Mar 1 2007 11:43AM
1st March 2007 Bullion Report
| GOLD | | FUNDAMENTALS | | Gold prices recovered in the early European trade, after experiencing sharp decline in the previous trading session, on bargain hunting. In London spot markets gold was offered at $670.3 per troy ounce, up $5. Trading interest has driven daily US dollar-denominated volumes for e-traded spot gold and silver up 85% during 2006 and the pattern is continuing into 2007. The US dollar rose against other major currencies in European trading. The euro traded at $1.3188, down from $1.3247 late Tuesday in New York. Comex warehouse stocks remained unchanged at 7,487,176 ounces. | TUG-OF-WAR: Bulls vs. Bears | | No. | Pressure Point | Favours | | 1. | Gold prices improve on bargain hunting. | Bulls | | 2. | Gold/silver trading interest up 85% in 2006. | Bulls | | 3. | US dollar recovers Euro, Yen. | Bears | | 4. | Comex warehouse stocks unchanged. | Bears | | |
EVENT WATCH: (Monday)
| | Australia Dec quarter private capital expenditure | | Japan Feb new vehicle sales | | Euro zone Feb manufacturing PMI | | US Jan personal income, Feb ISM index, construction, Q4 OFHEO house price index, Q4 NAHB-Wells Fargo housing index, Feb auto and light truck sales | | | | | | TECHNICALS | | | Gold charts are giving mixed signals. The prices closed below short term EMAs, which is a negative sign. However, long lower shadow of candlestick shows hesitation at lower levels. MACD is rising in positive region, which indicates increasing bullish momentum. Stochastic is also positive in overbought region. Prices are likely to see volatile movements. | | | | | TRADE RECOMMENDATION | | | | Contract | Call | Entry | T1 | T2 | SL | S2 | S1 | PCP | R1 | R2 | | MCX-April | Buy | >9630 | 9720 | 9750 | 9590 | 9521 | 9580 | 9628 | 9726 | 9792 | |
| | | SILVER | | FUNDAMENTALS | | Silver prices made a minor recovery in tune with the recovery in gold prices and traders taking interest at lower prices. In London spot trades silver was offered 7 cents higher at $14.17 per troy ounce. Recovery in the US dollar vis-à-vis other currencies and softer base metal, crude oil prices will keep silver prices under control. Comex warehouse stocks gained 597,436 troy ounces to 117.207 million troy ounces. | TUG-OF-WAR: Bulls vs. Bears | | No. | Pressure Point | Favours | | 1. | Silver prices recover on active participation. | Bulls | | 2. | Soft tone in base metal, crude oil prices. | Bears | | 3. | Comex stocks gained 597,436 ounces. | Bears | | |
EVENT WATCH:
| | Events covered under gold section | | | | | | TECHNICALS | | | Silver managed to close above 18-days EMA, which suggests the medium term outlook is still positive. Long lower shadow of candlestick depicts hesitation at lower levels. MACD is moving upward in positive region, which indicates increasing bullish momentum. However, stochastic has made bearish crossover in overbought region. The prices are likely to show volatility. | | | | | TRADE RECOMMENDATION | | | | Contract | Call | Entry | T1 | T2 | SL | S2 | S1 | PCP | R1 | R2 | | MCX-May | Buy | > 20985 | 21160 | 21250 | 20885 | 20671 | 20793 | 20959 | 21250 | 31365 | | | | | | DISCLAIMER
This report is prepared exclusively for Reliance Commodities by Indian Rural Market Products Pvt Ltd (IRMPL). The information and opinions contained in the document have been compiled from sources believed to be reliable. IRMPL does not warrant its accuracy, completeness and correctness. Use of data and information contained in this report is at your own risk. This document is not, and should not be construed as, an offer to sell or solicitation to buy any commodities. IRMPL and its affiliates and/or their officers, directors and employees may have positions in any commodities mentioned in this document (or in any related investment) and may from time to time add to or dispose of any such commodities (or investment).
| Reliance Disclaimer
| |