bullion intraday

Bullion




Gold rose for the fourth time in five sessions as surging energy costs boost demand for a hedge against inflation. Silver and platinum advanced for a fifth day

Gold climbed 4 percent this year, reaching an all-time high of $1,033.90 an ounce on March 17, when crude set a previous high. Still, the metal has trailed advances in oil, which has gained 28 percent this year

Gold rose in yesterday after StreetTracks Gold Trust, the biggest exchange-traded fund backed by bullion, reported a second consecutive gain in investors' holdings. The trust held 590.57 metric tons of gold as of yesterday, up from 580.45 tons on May 5. Investors last month cut their holdings in the ETF by 9.6 percent. The total now held is equal to about three months of global mine supply.

India spot gold prices rose for the third consecutive trading session supported by domestic retail buying and a weaker rupee, Meanwhile, in London, gold eased in early trade as the greenback extended gains against the euro, reducing the gold's appeal as an alternative investment to the dollar.

However, wholesale demand has vanished with higher prices, The Indian rupee fell to a one-year low of 41.82 as record high oil prices pushed up dollar demand from refiners and weak stock markets doused hopes of foreign inflows,

Harmony Gold Mining Co.,Africa's third-biggest producer of the precious metal, said output may rise by a fifth to about 12.5 metric tons in the current quarter as power approaches normal levels and grades improve

Russia's foreign currency and gold reserves, the world's third largest, rose to a record $533.9 billion, the central bank said, The value of reserves increased by $4.4 billion in the week ended May 2, Moscow-based Bank Rossii, the central bank, The reserves rose $10.7 billion in the previous week.

U.S. Economy:

Same-store sales at Wal-Mart were up 3.2% in April, better than expected. At Costco, same-store sales were up 8% in April, also better than expected.

The U.S. Labor Department said that jobless claims were down 18,000 to 365,000, less than expected.

Currencies update:

European Central Bank President Jean-Claude Trichet said there was no call for a rate hike or a rate cut at Thursday's ECB Governing Council meeting, and the decision to leave rates unchanged was unanimous.



We were unanimous in deciding to maintain rates where they are. As always, we have examined everything under all angles but there was absolutely no call for anything but the decision that we have taken," he told a news conference following the council meeting in Athens.

Australia's Bureau of Statistics said that the unemployment rate increased from 4.1% to 4.2% in April, but 25,400 new jobs were added, more than expected.

MCX Gold June

Technical Outlook:The daily stochastic have crossed over up which is a bullish indication. The stochastic indicators are rising from oversold level, which is bullish and should support higher prices. The market's short-term trend is positive as the close remains above the 9-day EMA. The downside closing price reversal on the daily chart is somewhat negative.

Market is expected to remain positive and the resistance is seen at 11973 levels. If market breaches11973 may see prices to take further upside towards 12076 and12252however if it holds back below 11694 may see prices to fall further on today. Major support is seen at 11518 and 11415

Recommendations–MCX Gold June: Buy at 11785 Target11890 and 11970 Stoploss at11735



MCX Silver July

Technical Outlook: The daily stochastic have crossed over up which is a bullish indication. The stochastic indicators are rising from oversold level, which is bullish and should support higher prices. The market's short-term trend is positive as the close remains above the 9-day EMA. The downside closing price reversal on the daily chart is somewhat negative.

Market is expected to remain positive and the resistance is seen at 23282 levels. If market breaches 23282 may see prices to take further upside towards 23515and 23929 however if it holds back below 22635 may see prices to fall further on today. Major support is seen at 22221 and 21988

Recommendations-MCX Silver July: Buy at 22730 Target 22910 and 23250 Stop loss at 22570

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