Bullion

MCX Gold was little changed with very low volume on shortened trading hours in Europe and in the U.S. before the Christmas holiday. The other precious metals were similarly quiet and held recent ranges to end the year on a positive note.

Hedge fund managers and other large speculators cut their net-long position in New York gold futures by 1 percent in the week ended Dec. 18, according to U.S. Commodity Futures Trading Commission Data.

The dollar dropped against the euro on Monday and was down as much as 0.3 percent against a basket of six major currencies. Five of the six past bear markets in the dollar have sent gold higher.

MCX Gold Feb (Daily Chart)

Technical Outlook:

Momentum studies have turned bullish; will tend to support reversal action if it occurs. The daily stochastics have crossed over up which is a bullish indication. The stochastics indicators are increasing from over sold level, which is bullish and should support higher prices. The market's short-term trend is positive as the close remains above the 18-day EMA. The downside closing price reversal on the daily chart is somewhat positive.

Recommendations:

MCX Gold Feb: Buy at 10360-70 for the target f 10430 and 10500 with stop loss at 10315

MCX Silver Mar (Daily Chart)

Technical Outlook:

Momentum studies have turned bullish; will tend to support reversal action if it occurs. The daily stochastics have crossed over up which is a bullish indication. The stochastics indicators are increasing from over sold level, which is bullish and should support higher prices. The market's short-term trend is positive as the close remains above the 18-day EMA. The downside closing price reversal on the daily chart is somewhat positive.

Recommendations:

MCX Silver March: Buy at 19200-180 for the target o 19350 and 19560 with stop loss at 19050