precious metals

Precious metals zoomed in MCX, COMEX and spot markets reflecting the trends in international markets supported by Bhutto death, positive consumer confidence data and increase in jobless claims.

Gold rallied on Thursday tracing the gains in oil and a weak dollar. International spot gold currently quoted at $827 troy an ounce, up by $3 Oil traded at $97.20 per barrel. The euro was up against the dollar.

Benazir Bhutto, the former Prime Minister of Pakistan, was killed on 27th Dec 2007, along with at least 14 of her supporters in an intentional suicidal attack. Bhutto led the opposition against President Musharraf and her death adds even more fuel to what was already a highly flammable political situation.

US Economic data gave a support to higher bullion prices as consumer confidences was les then expected and Job less claim data increased.

The U.S. Commerce Department said that durable good orders were up .1% in November, less than expected. Excluding transportation, orders were down .7% in November.

The Conference Board's index of consumer confidence increased from 87.8 to 88.6 in December, stronger than expected.

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 10455-475 for the target of 10550 and 10600 with stop loss at 10430

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 19200-250 for the target of 19340 and 19520 with stop loss at 19120

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