Bullion

Gold rose, erasing earlier losses, as the dollar fell against the euro, boosting the investment appeal of the precious metal. Silver followed the yellow metal. MCX Gold feb registered a high of Rs. 11190 per 10 gram and closed with gain similarly MCX Silver March followed the trend and registered the high of Rs. 20510 per kg and closed with gain.

· International Spot gold wad trading higher and registered a high of $886.20 for the day similarly Spot silver registered at of $15.83 closed with gains.

· The European Central Bank said it decided to leave its leading interest rates unchanged at today's governing council meeting. The minimum bid rate on main refinancing operations remains at 4.00 pct.

· As anticipated the Bank of England has left its benchmark Bank rate unchanged at 5.50 pct.

· While US dollar got some support from Wholesale data and jobless claims data.



· Gold rose, erasing earlier losses, as the dollar fell against the euro, boosting the investment appeal of the precious metal. Silver followed the yellow metal. MCX Gold feb registered a high of Rs. 11190 per 10 gram and closed with gain similarly MCX Silver March followed the trend and registered the high of Rs. 20510 per kg and closed with gain.

· International Spot gold wad trading higher and registered a high of $886.20 for the day similarly Spot silver registered at of $15.83 closed with gains.

· The European Central Bank said it decided to leave its leading interest rates unchanged at today's governing council meeting. The minimum bid rate on main refinancing operations remains at 4.00 pct.

· As anticipated the Bank of England has left its benchmark Bank rate unchanged at 5.50 pct.

· While US dollar got some support from Wholesale data and jobless claims data.

Indian Bullion Spot Market

Spot Gold and Silver prices shed some of the gains booked in the last few session on profit taking. However, traders continue to be upbeat about the near term outlook of the yellow metal.

Indian Spot Bullion Closing

LOCATION


Gold 995


Net Change


Gold 999


Net Change


Silver 999


Net Change

MUMBAI


11140


-140


11195


-135


20235


-100

CHENNAI


11230


-50


11280


-40


19500


-500

JAIPUR








11150


-150


20100


-400

AHMEDABAD


11135


-115


11185


-115


20330


-520

DELHI


11200


-100


11260


-100


19980


-150



MCX Gold Feb (Daily Chart)



Technical Outlook:

Momentum studies are still bullish but are now at overbought levels and 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 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 moving average. The downside closing price reversal on the daily chart is somewhat negative.

Recommendations: MCX Gold Feb: Buy at 11140-11130 for the target of 11180 and 11250 with stop loss at 11075



MCX Silver Mar (Daily Chart)



Technical Outlook:

Momentum studies are still bullish but are now at overbought levels and 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 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 moving average. The downside closing price reversal on the daily chart is somewhat negative.

Recommendations: MCX Silver March: Buy at 20380-360 for the target of 20680 and 20960 with stop loss at 20160

MCXARUN
9994500540