bullion intraday

§ Gold fell in New York after the dollar rebounded against the euro. Silver also declined.

§ The dollar rose as much as 0.8 percent against the euro after falling within 1 cent of the all-time low yesterday. Gold reached a record $1,033.90 an ounce on March 17 when the euro rose to the highest ever.

§ Investment demand in the Street Tracks Gold Trust, the biggest exchange-traded fund backed by bullion, has remained unchanged at 634 metric tons this week after reaching a record 663.8 metric tons on March 17.

§ The US government says fewer people signed up for unemployment benefits last week, although that didn't change the broader picture of a slower jobs market. The US economy nearly sputtered out in the final quarter of last year and is probably faring even worse now amid the continuing housing, credit and financial crises.

§ Russians are opening a record number of precious metals bank accounts and buying more bullion as gold trades near its all-time high, the country's biggest bank said.

US Economy:

§ The Commerce Department reported Thursday that gross domestic product increased at a feeble 0.6 percent annual rate in the October-to-December quarter. The reading - unchanged from a previous estimate a month ago - provided stark evidence of just how much the economy has weakened. In the prior quarter, the economy clocked in at a sizzling 4.9 percent growth rate.

§ The Labor Department, in a new report Thursday, says new applications filed for unemployment benefits last week fell by a seasonally adjusted 9,000 to 366,000. That level of 366,000 was better than the 371,000 that many economists were forecasting. Still, economists predict the nation's labor market will slow and unemployment will rise this year, given the credit and financial crises.

MCX Gold Apr (Daily Chart)



Technical Outlook:Momentum studies are bearish but are now at oversold levels and will tend to support reversal action if it occurs. The daily stochastics have crossed over down which is a bearish indication. The stochastics indicators are decreasing from overbought level, which is bearish and should support lower prices. The market's short-term trend is negative as the close remains below the 9-day EMA. The upside closing price reversal on the daily chart is somewhat positive.

Recommendations -MCX Gold April: Buy at 12245-30 Target 12320 and 12360 Stop loss 12210

MCX Silver May (Daily Chart)



Technical Outlook: Momentum studies are bearish but are now at oversold levels and will tend to support reversal action if it occurs. The daily stochastics have crossed over down which is a bearish indication. The stochastics indicators are decreasing from overbought level, which is bearish and should support lower prices. The market's short-term trend is negative as the close remains below the 9-day EMA. The upside closing price reversal on the daily chart is somewhat positive.

Recommendations -MCX Silver May: Buy at 23550 Target 23940 and 24160 stop loss 23415


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