bullion intraday

Major Headline:

- Gold fell in New York after crude oil and other commodities declined, reducing the appeal of the precious metal as a hedge against inflation. Silver also fell.

- Meanwhile, the dollar strengthened against the euro, making oil and other commodities less appealing as a hedge against inflation. A stronger dollar also makes oil more expensive to overseas investors.

- Reports from the Commerce Department showed U.S. consumer spending rose at the slowest pace in more than a year last month. Consumer prices excluding energy and food costs, preferred as a gauge of inflation by Federal Reserve policy makers, increased at a 2 percent annual rate, at the low end of the Fed's forecast of 2 percent to 2.2 percent for this year.

- Price decline is an opportunity for investors seeking a hedge against inflation and a falling dollar, analysts said. Gold gained 14 percent this year before today.

US Economy:

- The U.S. Commerce Department said that personal incomes were up .5% in February, better than expected. Consumer spending was up .1%, as expected.

- The University of Michigan's consumer sentiment index fell from 70.8 to 69.5 in March, weaker than expected. The December eurodollars were up .03 at 97.765.

- In an ongoing effort to help banks stay liquid, the Federal Reserve said that it will offer $50 billion on April 7th and April 21st.

Currency Update:

- The U.K.'s Office for National Statistics said that real GDP was up .6% in the fourth quarter of 2007 and up 2.8% from a year ago, a little less than expected. The June pound is steady to lower.

- The unemployment rate in Japan increased from 3.8% to 3.9% in February. Japan's Statistics Bureau said that consumer prices were down .2% in February, but up 1.0% from a year ago

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 11980 Target 12060 and 12140 Stop loss 11915

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 22900 Target 23180 and 23460 stop loss 22760


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