Bullion

Major Headline:

· MCX gold trade near all-time high Monday boosted by overseas prices, gaining for the fifth consecutive trading session, but domestic demand slackened.

· MCX Gold April registered days high near Rs. 11809, silver followed yellow metals and traded near Rs. 22174 per kg. Markets remain positive following international trend.

· Gold rose also as interest-rate cuts feed through to higher commodity prices, increasing demand for precious metals as a hedge against inflation. Platinum advanced to a record, silver climbed to a 27-year high and palladium reached the highest since September 2001.

· Group of Seven officials at a meeting in Tokyo at the weekend indicated they would lower rates further to spur economic growth. Gold has climbed 11 percent this year as the Federal Reserve reduced benchmark borrowing costs 1.25 percentage points, saying ``risks to growth remain.'' The UBS Bloomberg Constant Maturity Commodity Index has gained 8.6 percent.

· The US dollar was weaker against the yen in afternoon trade in Asia on Monday on speculation Federal Reserve Chairman Ben Bernanke will later this week reiterate that interest rates will fall further amid slowing economic growth.

· World oil prices continued higher in Asian trade on Monday while supply worries outweighed concerns about the health of the United States economy.

Indian Bullion Spot Market

Precious metals maintained its upbeat tone in spot markets on a weak dollar and supply problems. Saturday's approval by the Group of Seven rich nations for sale of gold by the International Monetary Fund (IMF) from April also failed to impact the upside.

· In Mumbai markets, gold (995) finished at Rs 11,895/10gm and gold (.999) finished at Rs 11,950/10g. Arrivals in gold were at 150 kilos and traded volumes at 100 kilos. Silver (.999) closed at Rs 21,675/kg. Arrivals in silver were at 200 kilos and traded volumes at 200 kilos.

· Chennai gold (995) and gold (.999) finished at Rs 11,870/10gm and Rs 11,920/10gm respectively whereas Silver (.999) closed at Rs 21,100/kg.

· Jaipur gold standard closed at Rs.11,950/10gm whereas Silver (.999) ends at Rs 21,500/kg.

· Ahmedabad gold (995) closed at Rs 11,890/10gm and gold (.999) at 11,950/10gm respectively whereas Silver (.999) closed at Rs 22,000/kg.

· In Delhi bullion markets, gold (995) closed at Rs.11,890/10gm and gold (.999) at Rs 11,950/10gm respectively whereas Silver (.999) ends Rs.21,400/kg.

MCX Gold (Apr)

Technical Outlook:

Momentum studies are 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 April: Buy at 11700-680 for the target of 11760 and 11800 with stop loss at 11650

Sell at 11810/30 for the target of 11740 and 11700 with stoploss at 11855

MCX Silver (Mar)

Technical Outlook:

Momentum studies are 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 21960-940 for the target of 22150 and 22350/450 with stop loss at 21845

Sell at 22450/22500 for the target of 22350 and 22150 with stoploss at 22600

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