bullion intraday

Bullion Apr 30, 2008

Major Headlines:

Indian spot gold closed marginally lower led by overseas cues, and market participants said they expect Gold imports are expected to improve this month and may be at around 40-50 Tones as prices declined to the lows and also as physical buyers who were on the sidelines bought the yellow metal to stock it up before the wedding and festival season



Gold fell to a four-week low as the dollar climbed against the euro, eroding the appeal of precious metals and commodities as alternative investments. Silver also declined.


ECB Says One Member Bank Sold Gold Worth Eu18 Mln In last Week and Before yesterday, gold and commodities gained more than 30 percent in the past 12 months, while the dollar slumped 13 percent against the euro



The dollar rose on speculation the Federal Reserve will signal today that it's close to pausing interest-rate cuts. Gold has gained 6.4 percent this year, while the euro has advanced 6.7 percent against the dollar



Anglo Platinum Ltd., the world's biggest producer of the metal, today said first-quarter output fell 24 percent to 428,600 ounces after power cuts affected South African mines. The precious metal, used to make jewelry and devices that cut exhaust emissions from cars, has climbed 28 percent this year.



Gold fell for the first time in three days in London as the dollar strengthened against the Euro, diminishing the metal's appeal as a hedge against further drops in the U.S. currency. Silver and platinum also declined.



Platinum and palladium fell in New York, following gold, after the dollar rose, reducing the appeal of precious metals as an inflation hedge.



The dollar strengthened to a three-week high against the euro on speculation that the Federal Reserve may signal a pause in interest-rate cuts today after making six reductions since September. Platinum, mostly traded in dollars, rose 33 percent last year as the dollar fell 9.5 percent against the euro


Interest in gold as an alternative asset waned as the dollar rebounded in the past week from its record low against the euro, and oil's climb to as high as $119.93 a barrel yesterday failed to trigger interest in bullion as a hedge against inflation


U.S. Economy:

The Federal Reserve meets today and tomorrow and is expected to reduce the federal funds rate by a quarter of a percent tomorrow. The June U.S. dollar is trading higher as many are wondering if the seven-month campaign of interest rate cuts is about over.

The Conference Board said that its index of consumer confidence fell from 65.9 to 62.3 in April, better than expected, but also the lowest in five years. The March Eurodollars are steady to higher.

The Standard & Poor's/Case-Shiller home price index showed that U.S. home prices were down 12.7% in February from a year ago. Three of the twenty cities surveyed did not show a decline

Currency Update:

The Conference Board said that its index of leading indicators for Australia was down .2% in February, to 184.8. Three of the seven indicators showed positive gains. The June Australian dollar is trading lower

The U.S. currency headed for its first monthly advance versus the yen and euro since December as traders increased bets the Fed will stop lowering borrowing costs after a quarter-percentage point reduction today.

MCX Gold June

Technical Outlook: The daily stochastic have crossed over down which is a bearish indication. The stochastic 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 at11426 If market breaches below 11426 may see prices to take further correction towards 11372 and11279 however if it holds back above 11573 may see prices to rise further on today. Major resistance is seen at 11666 and 11720


Recommendations–MCX Gold June: Sell at11540 Target11430 and 11360 Stoploss at11590

MCX Silver May

Technical Outlook: The daily stochastic have crossed over down which is a bearish indication. The stochastic 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 21979 If market breaches below 21979 may see prices to take further correction towards 21809 and 21566 however if it holds back above 22392 may see prices to rise further on today. Major resistance is seen at 22635 and 22805

Recommendations-MCX Silver May: Sell at 22250 Target 22050 and 21860 Stop loss at 22420


MCXARUN
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