Bullion Intraday

· Gold declined from a record in Asia as some investors judged the recent rally was overdone. Silver also fell.

· Gold has gained 36 percent since Sept. 18, when Federal Reserve Chairman Ben S. Bernanke made the first of five cuts in the U.S. benchmark interest rate to stave off a recession. The rates cuts increase the appeal of bullion as an alternative investment to other dollar-denominated assets, and raise inflation concerns.

· The dollar had gained after both European and Japanese officials expressed concern about the recent sharp raises in their currencies against the US unit.

· Market players, however, are skeptical about the prospect of actual intervention to prop up the dollar, while there are still no fundamental reasons to buy the US currency.

· Banro Corp., the Canadian developer of gold mines in the Democratic Republic of Congo, may sell stakes in two deposits to help finance their development.

· That's one of the options available to Banro before if invests $536 million to build the mines, Chief Executive Officer Mike Prinsloo said yesterday in an interview. The company may take on debt using the deposits as collateral, he said.

Indian Spot Bullion Market:

Gold and Silver finished up in spot markets tracing the huge gains in international markets propelled by a weak dollar and upbeat crude oil.

· In Mumbai markets, gold (995) increased by Rs 60 to finish at Rs 12,805 per 10 gm and gold (.999) by Rs 55 to end at Rs 12,855/10gm. Arrivals in gold were at 200 kilos. Silver (.999) closed at Rs 24,650/kg, up by Rs 80. Arrivals in silver were at 350 kilos.

· Ahmedabad gold (995) moved up by Rs 25 to close at Rs 12,835/10gm and gold (.999) by Rs 20 to close at Rs 12,885/10gm whereas Silver (.999) closed at Rs 25,550/kg, up by Rs 290.

· In Delhi bullion markets, gold (995) increased by Rs 100 to finish at Rs 12,820/10gm and gold (.999) by Rs 80 to finish at Rs 12,890/10gm whereas Silver (.999) ends at Rs 24,350/kg, down by Rs 170.

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: Sell at 12460 Target 12380 and 12310 Stop loss 12510



MCX Silver May

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 May: Sell at 25380 Target 25100 and 24800 Stop loss at 25520

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