bullion intraday

Bullion
03 June 2008 10:28:35



Bullion June 03 2008

Major Headlines:

Gold rose on speculation that investors may stock up on the metal after the biggest weekly drop in price since mid-March. Silver also gained, Gold, which declined 3.7 percent last week, will rise into the first quarter, according to forecasts by analysts compiled by Bloomberg.

ETF Securities Ltd., manager of about $5.7 billion of commodities, said investments in its industrial- metal products dropped 15 percent from the end of March as investors favored precious metals including gold and platinum. Nonferrous-metal assets fell to $172 million at the end of May, from $203 million on March 31, Nicholas Brooks, Assets in precious metals expanded 13 percent to $2.6 billion.

Hedge funds and other large speculators increased so-called net long positions, or bets on higher futures, 5.2 percent in the week ended May 27. It was the second straight gain, May 30 data from the U.S. Commodity Futures Trading Commission showed

Peru's output of most metals rose in April, while gold fell slightly, the Energy and Mines Ministry said late Sunday, Silver production reached 291,646 kilograms in April, an increase of 4.98% compared with April 2006. The ministry said gold output totaled 14,349 kilograms in April, down 0.46% Compared with the same month a year before and Peru is the world's largest producer of silver, and depending on annual production, is among the top five for zinc, copper and gold.

Gold output in Australia slowed sharply during the first quarter of this year, falling to the lowest quarterly level in 19 years because of lower average ore grades. And the Mexico silver production rose 12.6% year on year to 217 metric tons in March, while in April

The rate of gold de-hedging this year may reach the average annual rate it's reached since 2000 of 282 tons, but will likely tail off in subsequent years, the scheduled delivery program suggests further de-hedging of roughly 80 tons this year but anecdotal evidence already indicates that this will be increase


U.S.Economy:

The Institute of Supply Management's manufacturing index improved from 48.6 to 49.6 in May, better than expected, but still a sign of slight contraction.

The U.S. Census Bureau said that construction spending was at an annual rate of $1.1209 trillion in April, down .4% from March's pace and down 3.9% from a year ago. So far in 2008, construction spending is down 2.8% from a year ago


Currencies update:

Australia's Bureau of Statistics said that retail sales were down .2% in April, weaker than expected. The June Australian dollar is steady.

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 at 12118 If market breaches below 12118 may see prices to take further correction towards 11967 and 11873 However if it holds back above 12363 may see prices to rise further on today. Major resistance is seen at 12457 and 12608

Recommendations–MCX Gold June: Buy at 12210 Target 12270 and 12350 Stoploss at 12155

MCX Silver July - 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 23118 If market breaches below 23168 may see prices to take further correction towards 22871 and 22690 However if it holds back above 23646 may see prices to rise further on today. Major resistance is seen at 23827 and 24124

Recommendations-MCX Silver July: Buy at 23290 Target 23520 and 23780 stoploss at 23120

MCXARUN
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