Bullion intraday

· Gold was little changed in Asia, underpinned by inflation concerns as crude oil traded near a record and demand for safe-haven assets amid speculation credit- market losses may increase.

· Goldcorp Inc expects the price of gold to top $1,000 an ounce and stay there for a long time, a development that will allow the company to improve operating margins, Chief Executive Kevin McArthur said on Monday.

· In a wide-ranging interview at the Reuters Global Mining Summit, McArthur, who is also president of the Canadian gold producer, said he thinks the price of gold, which was at $973 an ounce on Monday, is not "anywhere near a bubble."

· Dollar was on the back foot against the pound and the euro, it remained relatively firm against the yen as risk appetite picked up, partly driven by rumours the US Federal Reserve is considering a series of new measures to improve conditions in the credit markets.

· The Fed is widely expected to cut US interest rates by 75 basis points when it meets next week but reports are now circulating that it could also implement a series of other measures to improve liquidity conditions. These include the Fed purchasing mortgage-backed securities issues and offering to lend directly to non-banks. These reports have helped lift stocks markets in Asia and Europe, pushed up the yields on US Treasuries as investors' worries about the state of the American financial sector subside slightly.

· Ashley Davies, currency strategist at UBS, said the reports could provide the dollar with some short-term support due to the rise in bond yields and drop in concern about the banking sector. However, he said even if the measures do come to fruition they are unlikely to prevent the US currency continuing to depreciate in the medium term.

· The euro was trading just off its all-time record high against the dollar following a stronger-than expected German economic sentiment survey. The ZEW's economic expectations index climbed to -32.0 in March from February's -39.5, much stronger than the -40.0 analysts had been forecasting. This helped the euro regain its upward momentum against the dollar, soaring to a fresh all-time high of 1.5495 usd on the back of the news.

· Analysts said the firmer-than-expected reading indicates that investors in the euro zone's largest economy are becoming a touch more optimistic that they can avoid the worst of the fallout from the US slowdown.


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 12650 Target 12715 and 12760 Stop loss at 12615

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 25350 Target 25800 and 26000 Stop loss 25115

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