bullion intraday

Bullion Apr 25, 2008

Major Headlines:

* Gold futures reacted sharply, with the June contract dropping $20.30 to $888.70 an ounce on the New York Mercantile Exchange, after earlier falling as low as $884.50, its lowest level since Jan. 10. Gold has fallen 8 percent since March and is nearly $150 off its all-time high of $1,038.60
* Gold broke through the $900 level for the second time this month as participants continued to be frustrated by the metal's recent lack of response to outside drivers and by investor apathy and dollar strengthened, oil declined and the world's largest gold exchange-traded fund saw a marked drop in holdings.

· Gold fell for the second straight day in New York as the dollar extended gains from the lowest ever against the euro. Silver also declined. The euro has dropped as much as 2.1 percent from the record $1.6019 on April 22 amid speculation the U.S. Federal Reserve may slow the pace of interest-rate cuts.

· The 15-nation currency's decline versus the dollar was the biggest in more than a week as orders for U.S. durable goods excluding transportation equipment rose more than forecast last month. Returns from investing in commodities have surged this year, with natural gas topping all others, including oil, gold, and silver

Assets in the StreetTracks Gold Trust, the largest exchange-traded fund backed by bullion, fell for a second consecutive day. Gold held by the company declined by about 11.7 metric tons, or1.9 percent, to 611.8 tons, according to figures on the StreetTracks

· Aquarius Platinum Ltd. Said fiscal third-quarter production fell to its lowest since the end of 2005 after a walkout by workers and power cuts in South Africa and Zimbabwe. Production of platinum-group metals in the quarter ended in March fell to 111,524 ounces, from 137,456 ounces in the previous quarter. Full-year output should be 520,000 to 530,000 ounces, compared with 530,276 ounces last year, Aquarius said. Platinum and palladium are used in jewellery and auto catalysts to reduce vehicle pollution



U.S. Economy:

· The U.S. Labor Department said that job claims were down 33,000 last week to 342,000, less than expected and the lowest in tow months.

· The U.S. Commerce Department said that durable goods orders were down .3% in March, the third consecutive monthly decline. Excluding transportation, orders were up 1.5% on the month, stronger than expected.

· The U.S. Census Bureau said that new home sales were at an annual rate of 526,000 in March, down 8.5% from February's pace and down 36.6% from a year ago. New homes for sale represent an 11-month supply.

Currency Update:

· The IFO Institute's index of German business sentiment fell from 104.8 to 102.4 in April, weaker than expected. The June euro is trading lower.

· The U.K.'s Office for National Statistics said that retail sales were down .4% in March, weaker than expected.

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 11470 If market breaches below 11470, may see prices to take further correction towards 11375 and 11225 However if it holds back above 11711, may see prices to rise further on today. Major resistance is seen at 11861 and 11954


Recommendations–MCX Gold June: Sell at11630 Target11530 and 11470 Stoploss at11680

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 21950 If market breaches below 21970 may see prices to take further correction towards 21740 and 21355 However if it holds back above 22585 may see prices to rise further on today. Major resistance is seen at 22970 and 23200

Recommendations-MCX Silver May: Sell at 22270 Target 22100 and 21950 Stop loss at 22430


MCXARUN
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