bullion intraday

Bullion
10 June 2008 10:43:07


Major Headlines:

Gold and silver declined after crude oil rebound from the record high and stronger than excepted US housing data given some support to dollar, Euro slips against dollar.

Platinum futures fell on speculation that mines in South Africa, the world's biggest producer of the metal, may have enough electricity throughout the winter to provide stable supplies of the metal. Palladium climbed.

Gold rose yesterday in earlier session as tensions between Iran and Israel escalated, enhancing the appeal of the precious metal as an investment haven. Silver dropped. Israel may attack Iran if the country doesn't abandon its nuclear-development program, Shaul Mofaz, Israel's transportation minister and a contender for the post of prime minister, told the Yediot Ahronot daily last week. Some investors buy gold during times of political unrest to hedge against turmoil in financial markets

OAO Polyus Gold, Russia's biggest producer of the metal, said full-year profit fell 96 percent after a gain in the prior year from the sale of 20 percent in Gold Fields Ltd., the second-largest African gold producer.Net income dropped to $41.1 million from $1.16 billion, Profit surged more than 10-fold in 2006 after the company gained $980 million from the sale of its Gold Fields stake.

Indian spot gold closed higher on Monday, tracking international bullion markets, but gains were limited due to lack of physical buying in the domestic market. The domestic market is very dull with hardly any demand for the yellow metal, as higher prices have kept buyers off the market; June to July is usually a slack period for the market with no wedding or festival seasons.

Meanwhile India's gold imports slumped over 59 percent year-on-year in May, as high prices dented demand for the yellow metal in the world's largest consuming nation. The country imported around 28 tones to 32 tones of the yellow metal compared with 69 tones a year earlier
Abu Dhabi's gold jewellery sales rose 10 per cent in volume and 20 per cent in value in April compared with the year-ago period, fuelled by demand from foreign residents despite high prices. Sales of gold jewellery in the capital were steady in volume in the first quarter of 2008 compared with the same period a year earlier, but their value rose by 30 per cent on record high prices

U.S.Economy:

The National Association of Realtors said that pending home sales were up 6.3% in April, stronger than expected and the highest level since October of 2007.

Lehman Brothers said that they lost an estimated $2.8 billion in the quarter that ended on May 31st, much more than expected. They also said that they are raising $6 billion in an offering of common and preferred stock to help shore up the company.

Currencies update:


The Canadian Mortgage and Housing Corporation said that new housing starts were at an annual rate of 221,300 units in May, up 3.5% on the month and better than expected. For the first five months of 2008, Canada's housing starts are up .7% from a year ago.

The U.K.'s Office for National Statistics said that producer prices were up 1.6% in May and up 8.9% from a year ago, much more than expected.

Japan's Cabinet Office said that its new index of leading indicators was up 2.0 to 92.8 in April. The September yen is trading lower


MCX Gold June - Technical Outlook:


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.

Technicals have turned neutral to bullish and market is expected to remain positive above 12547 levels. If sustain above this level can see a rally towards 12593 and 12629 If market sustains below 12360 can see a further fall towards 12305 and 12239

Recommendations–MCX Gold Aug: Sell at 12495 Target 12380 and 12290 Stoploss at 12548



MCX Silver July - Technical Outlook:

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.

Technicals have turned neutral to bullish and market is expected to remain positive above 24512 levels. If sustain above this level can see a rally towards 25812 and 25093 If market sustains below 23905. Can see a further fall towards 23731 and 23577

Recommendations-MCX Silver July: Sell at 24380 Target 24120 and 23900 stoploss at 2520


MCXARUN
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