bullion intraday

Major Headline:

* Gold and silver rose by the most in more than a week as higher energy and food costs boosted the Appeal of precious metals as a hedge against inflation. the IMF holds 103.4 million ounces of gold, trailing only the U.S. and Germany, according to the World Gold Council.



* Gold rose in yesterday on signs the U.S. economy is still weakening, buoying demand for alternative Investments including precious metals. The Labour Department in Washington said April 4 that the U.S. lost jobs for a third consecutive month in March and the unemployment rate rose to the highest since September 2005, pointing to an economy that may already be in a recession.
* AngloGold Ashanti Ltd., Africa's biggest gold producer, on April 4 increased its first-quarter output forecast by 8 percent after power supply in South Africa stabilized. First-quarter production is forecast at about 1.19 million ounces, the Johannesburg-based company said.
* Hedge-fund managers and other large speculators decreased their net-long position in New York gold futures in the week ended April 1, according to U.S. CFTC Data, Speculative long positions, or bets prices will rise, out numbered short positions by 161,278 contracts on Comex. Net-long positions fell by 14,464 contracts, or 8 percent, from a week earlier.
* South Africa's central bank cut foreign currency purchases last month to avoid further weakening the rand, which fell 4 percent against the dollar. Gross gold and foreign currency reserves increased 0.6 percent to $34.4 billion at the end of March, after gaining 1.8 percent in the previous month, the Pretoria-based Reserve Bank said on its Web site today. Net reserves climbed to $33.1 billion from $32.7 billion.

· Switzerland's central bank sold an estimated 11 metric tons (353,658 ounces) of gold last month, little changed from February, based on figures from the Swiss Federal Statistical Office. Swiss bullion holdings fell to 33.27 billion Swiss francs ($32.8 billion) in March, from 34.22 billion francs a month earlier, according to a report yesterday on the Web site of statistical office in Neuchatel.



US Economy:

- There is talk that private investors are about to invest $5 billion in Washington Mutual, the largest savings and loan in the U.S. The June S&P 500 is steady to higher, helped by a perception that the financial industry may be slowly emerging from its problems.

Currency Update:

- Canadian municipalities issued C$5.8 billion of building permits in February, down 1.0% from January's pace. The June Canadian dollar is steady to lower.

- Japan's Cabinet Office said that its index of leading indicators increased from 36.4% to 50% in February, the best in seven months. The June yen is trading lower.

- The Organization for Economic Cooperation and Development said that it expects real GDP in Japan to increase 1.6% in 2008 and 1.8% in 2009.

MCX Gold June

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 EMA. The downside closing price reversal on the daily chart is somewhat negative.

Recommendations – MCX Gold June: Buy at 11870 Target 11940 and 12030 Stop loss at1182

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 EMA. The downside closing price reversal on the daily chart is somewhat negative.

Recommendations -MCX Silver May: Buy at 23290 Target 23480 and 23620 Stop loss at23160

Stoploss must from afternoon market may down

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