bullion intrday

Gold rose, rebounding from a third straight weekly loss, as the dollar weakened against the euro. And the record oil prices supporting the the bullion prices, the euro rose as much as 0.5 percent after sliding 1.3 percent against the U.S. currency last week



Gold Field's South Deep mine remains closed after nine people died there in an accident on Thursday. Safety inspectors are expected to announce today whether the mine is safe enough to continue operations



Goldcorp Inc., the world's second- largest gold producer by market value, said first-quarter net income raised to $229.5 million, or 32 cents a share.



India's gold imports in April almost halved from a year ago, the seventh month of decline, as high prices curbed demand from jewelers and retail investors in the world's biggest consumer of the precious metal. Purchases totaled 32 metric tons, compared with 62 tons a year ago, according to provisional data compiled by the Bombay Bullion Association Ltd.,



Kazakhstan, Central Asia's largest oil producer, increased foreign-currency Reserves rose by $1.46 billion to $20.7 billion last month and the value of gold held by the bank fell by $150.5 million to $1.88 billion in April from a month before, as the metal's price dropped 7.4 percent on international markets



China has 15,000 to 20,000 metric tons of proven underground gold deposits, the world's seventh-biggest, Easily mined deposits total 4,634 tons the official Xinhua News Agency reported, citing Hou Huimin, vice chairman of the China Gold Association.



According to reports, China has made breakthrough in mining technology for low-grade ore. At present, China has a complete gold industry chain ranging from exploration, extraction, processing to smelter. Some of the technologies have reached the international advanced level. Over the past 30 years, China has built more than 330 gold mines, mining, with daily ore election reaching 110,000 tons

U.S. Economy:

The Institute of Supply Management's U.S. index of services increased from 49.6 to 52.0 in April, stronger than expected

The Federal Reserve announced that it was acting in coordination with the ECB to expand credit and will increase the emergency reserves it offer to banks to $150 billion in May.

Currencies update:

The Canadian dollar rose from a three- week low as the country's commodity exports gained, boosting the currency's appeal.Canada’s dollar strengthened against 10 of the 16 most actively traded currencies amid gold and crude oil price increases. Commodities account for about half ofCanada's exports.

The Australian andNew Zealand dollars rose as speculation theU.S. economy will avoid a recession bolstered prices for commodities that are key to the nations' export earnings.

MCX Gold June (Daily Chart)

Technical Outlook:The daily stochastic have crossed over up which is a bullish indication. The stochastic 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.

Market is expected to remain positive and the resistance is seen at 11520 levels. If market breaches 11520 may see prices to take further upside towards 11585 and 11660 however if it holds back below 11361 may see prices to fall further on today. Major support is seen at 11271 and 11223

Recommendations–MCX Gold June: Buy a t11420 Target11490 and 11560 Stoploss at11370



MCX Silver July (Daily Chart)

Technical Outlook: The daily stochastic have crossed over up which is a bullish indication. The stochastic 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.

Market is expected to remain positive and the resistance is seen at 22583 levels. If market breaches 22583 may see prices to take further upside towards 22727 and 22928 however if it holds back below 22238 may see prices to fall further on today. Major support is seen at 22037 and 21893

Recommendations-MCX Silver July: Buy at 22360 Target 22510 and 22650 Stop loss at 22210


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