BULLION INTRADAY

· Gold rose to a record in Comex and MCX as the dollar fell to the lowest ever against the euro, spurring some investors to buy the metal as an alternative investment to stocks and bonds.

· The euro rose to a record against the dollar after European Central Bank President Jean-Claude Trichet said there is ``strong upward pressure on inflation,'' signaling he's in no hurry to cut interest rates.

· The euro advanced to $1.5372, the highest level since the single currency's debut in 1999, before trading at $1.5365 by 2:12 p.m. in London, from $1.5265 yesterday in New York. It was at 158.57 yen, from 158.76 yesterday.

· The number of people filing new claims for unemployment insurance fell in the latest week while continuing claims for unemployment climbed to the highest level in over two years, the Labor Department said.

· The number of first-time claims filed in the week ending March 1 fell 24,000 to 351,000, below the 360,000 claims economists polled by Thomson's IFR Markets had expected on average.

· The European Central Bank has raised its forecasts for euro zone inflation to 2.9 pct from 2.5 pct in 2008 and 2.1 pct from 1.8 pct in 2009. Significantly, this means inflation will be above the ECB's medium-term target of a rate "below but close to" 2.0 pct in both this and next year.

· Inflation reached 3.2 pct in January and February, the highest level recorded since the launch of the euro. Meanwhile, the ECB cut its forecast for 2008 GDP growth to 1.7 pct from 2.0 pct and its projection for 2009 growth to 1.8 pct from 2.1 pct. The forecasts are the mid-point of ranges given by ECB president Jean-Claude Trichet at today's ECB news conference.

Indian Spot Bullion Market:

· .Spot market remain closed for the day on Maha shivRatri holiday all over India.

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 12680 Target 12820 and 12900 Stop loss at 12665

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: Buy at 26250 Target 26700 and 26900 Stop loss at 26115

MCXARUN
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