Bullion intraday

Bullion Apr 24, 2008

Major Headlines:

Gold fell after energy costs declined and the euro eased from a record against the dollar, eroding the appeal of the precious metal as an alternative investment. Silver also dropped.



* Platinum group metals have sold off along with gold as oil and the euro have declined, and Participants liquidated positions in "dollar-rebound-driven" profit taking that may have also had to do with April coming to an end. "May be some month-end book-squaring going on," the floor trader says in Comex division.



* UBS AG said gold would trade at $850 an ounce in three months, down from a forecast of $1,000. Gold hit a record $1,033.90 an ounce on March 17, when the euro and crude set previous records



* Gold's price declines may be related to the metal's underperformance compared with record highs in the euro and oil set Tuesday, and Gold investors have also been disappointed by a large physical off take out of the world's largest gold exchange-traded fund



* Assets in the StreetTracks Gold Trust, the largest exchange-traded fund backed by bullion, declined to their lowest in a month. Gold held by the company fell 18.7 metric tons to 623.41 tons, the first change since April 9, according to figures on the StreetTracks Web site.



* Freeport-McMoRan Copper & Gold Inc., the world's second-largest copper producer, said it expects a gold output of 1.4 million ounces, up from a forecast of 1.3 million ounces on Jan. 23.



* Silver futures for May delivery dropped 52.4 cents, or 2.9 percent, to $17.10 an ounce. Before yesterday, the metal climbed 19 percent this year. Silver, which has wider industrial applications than gold, has tumbled 5.2 percent in the past five sessions. The price may drop to $15.50 over the next 12 months, Goldman Sachs Group Inc, said in a report on April 17.

Currency Update:

· Statistics Canada reported that retail sales totaled C$35.5 billion in February, down .7% on the month and weaker than expected. The June Canadian dollar is lower after the Bank of Canada reduced the interest rate yesterday from 3.50% to 3.00%.

· An index of industrial new orders for the Euro area 15 was up .6% in February. Also, an index of services increased from 51.6 to 51.8 in March, better than expected. The June euro is lower.

· Australia's Bureau of Statistics said that the consumer price index was up 4.2% in the first quarter from a year ago, increasing expectations for another rise in the interest rate. The June Australian dollar is steady to higher.

MCX Gold June


Technical Outlook: 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.



Market is expected to remain negative and the support is seen at 11615. If market breaches below 11615, may see prices to take further correction towards 11496 and 11340.However if it holds back above 11890, May see prices to rise further on today. Major resistance is seen at 12046 and 12165



Recommendations–MCX Gold June: Sell at11800 Target11710 and 11620 Stoploss at11870

MCX Silver May

Technical Outlook: 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.

Market is expected to remain negative and the support is seen at 22146 If market breaches below 22146 may see prices to take further correction towards 21673 and 21106,However if it holds back above 23186 may see prices to rise further on today. Major resistance is seen at

23753 and 24226

Recommendations-MCX Silver May: Sell at 22790 Target 22600 and 22410 Stop loss at22970

MCXARUN
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