Bullion

MCX Gold Feb traded in a tight range on Tuesday, as major international market remained closed for New Year celebrations. US and UK financial market remained closed for the day on the account of New Year holiday.

MCX Gold Feb opened at Rs. 10609 prg ten gram and remained in a tight range of 10585 –10625, Similarly MCX Silver March contract opened at Rs. 19422 per kg and remained in a tight range of 19420 –19500.

Wednesday Bullions are expected to remain positive on Weak dollar and higher energy prices following trend from last week. There are many data expected on Wednesday including FOMC Minutes at 15: 00 ET.

Concern about global security issues continues to boost the allure of gold following Bhutto's assassination, the ensuing unrest in nuclear power Pakistan and possible spill over effects into the wider region.

Worse-than-expected US housing data Friday, and the assassination of Pakistani opposition leader Benazir Bhutto last week triggered fresh safe-haven buying late, which added a plank of support to precious metals as the year comes to a close.

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 10560-580 for the target of 10680 and 10760 with stop loss at 10520

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 19400-380 for the target of 19640 and 19780 with stop loss at 19280

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