Bullion intraday

Major Headline:

- Gold and silver fell, erasing earlier gains, after a decline in commodity prices reduced demand for precious metals as a hedge against inflation.

- Payrolls probably shrank by 50,000, according to the median estimate of economists surveyed by Bloomberg News before the Labor Department's April 4 report. Job losses, slumping confidence and falling housing starts all point to a slowdown in consumer spending that will weaken growth.

- Gold production in Peru rose 17 percent 14,738 kilograms after Newmont Mining Corp. boosted output at its Yanacocha mine.

- The U.S. currency was little changed against the euro at $1.5784 as of 3:42 p.m. in Singapore. The dollar is heading for the biggest quarterly loss since 2004 as the Federal Reserve cut interest rates by 3 percentage points since September to 2.25 percent to kick start economic growth.

- The currency's decline against the Japanese yen has also made dollar- denominated gold for immediate delivery relatively cheaper than Japanese-yen denominated futures traded in Tokyo.

- Gold Fields Ltd., Africa's second- biggest gold producer, will have second-quarter production at the ``better end'' of guidance, Ian Cockerill, the company's chief executive officer, said.

US Economy:

- The Chicago Purchasing Managers' index increased from 44.5 to 48.2 in March, better than expected, but still a sign of contraction. The March eurodollars are steady to higher.





Currency Update:

- Statistics Canada said that real GDP was up .6% in January and up 2.2% from a year ago, stronger than expected. The June Canadian dollar is steady to lower.

- Eurostat reported that consumer prices in the Euro area (15) are expected to be up 3.5% in March from a year ago, up from a 3.3% gain in February and the highest rate in over 15 years. The June euro is steady to higher.

- Japan's Trade Ministry said that industrial production was down 1.2% in February, but a little better than expected.

- The U.K.'s Office for National Statistics said that its index of services was up .6% in January.

MCX Gold June

Technical Outlook: Momentum studies are bearish but are now at oversold levels and will tend to support reversal action if it occurs. The daily stochastics have crossed over down which is a bearish indication. The stochastics indicators are decreasing from overbought level, which is bearish and should support lower prices. The market's short-term trend is negative as the close remains below the 9-day EMA. The upside closing price reversal on the daily chart is somewhat positive. Recommendations - MCX Gold April: Sell at 11970 Target 11840 and 11765 Stop loss 12030

MCX Silver May

Technical Outlook: Momentum studies are bearish but are now at oversold levels and will tend to support reversal action if it occurs. The daily stochastics have crossed over down which is a bearish indication. The stochastics indicators are decreasing from overbought level, which is bearish and should support lower prices. The market's short-term trend is negative as the close remains below the 9-day EMA. The upside closing price reversal on the daily chart is somewhat positive. Recommendations -MCX Silver May: Sell at 22600 Target 21960 and 21800 Stop loss 22865

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