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Thursday, March 08, 2007

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Bullion Report

Feb 24 2007 9:27AM
24th Feb 2007 Bullion Report

GOLD

FUNDAMENTALS

Gold gained momentum in the early electronic trades taking a cue from firmer crude oil prices and weaker dollar. In London spot markets gold continued to be offered at higher tick and was quoting $9 stronger at $684.8 per troy ounce.

Safe heaven investment in gold is also picking-up as the tension grows between US and Iran after it defied UN demands to stop enriching uranium.

On the currency markets, the dollar traded fractionally lower against other major currencies early Friday.

Comex warehouse stocks remained unchanged at 7,487,276 ounces.

TUG-OF-WAR: Bulls vs. Bears

No.	Pressure Point	Favours
1.	Gold gains momentum aided by firm oil.	Bulls
2.	Safe heaven investment picking-up.	Bulls
3.	Weaker dollar against Euro, Yen.	Bulls
4.	Comex warehouse stock remain unchanged.	Bears

EVENT WATCH: (Monday)

Bank of Japan governor Toshihiko Fukui speaks (Saturday)

Euro group meeting, Brussels (Monday)

TECHNICALS

Gold Charts are showing firmness in the market, however long upper shadow of candlestick shows tentativeness at higher levels. The prices closed well above short term EMAs, which supports bulls. Rising MACD in positive zone shows increasing bullish momentum. Stochastic is also positive in neutral region. The prices are likely to hover on the positive side.

TRADE RECOMMENDATION

Contract	Call	Entry	T1	T2	SL	S2	S1	PCP	R1	R2
MCX-April	Buy	>9770	9800	9825	9750	9700	9735	9789	9840	9870

SILVER

FUNDAMENTALS

Silver prices continued to march ahead on a stronger advice from bullion complex, particularly from gold market. In London spot trades silver was offered 33 cents stronger at $14.55 per troy ounce.

However, softer tone in copper prices resulted from no change in stockpiles is expected to keep a tab on silver price movement.

Comex warehouse stocks eased 482,360 troy ounces to 116.016 million troy ounces.

TUG-OF-WAR: Bulls vs. Bears

No.	Pressure Point	Favours
1.	Silver to follow stronger gold.	Bulls
2.	Copper stockpiles remain unchanged.	Bears
3.	Comex stocks down 482,360 ounces.	Bulls

EVENT WATCH:

Events covered under gold section

TECHNICALS

Silver is looking strong at the stage. The prices closed well above short term EMAs after penetrating key resistance levels, which shows the firmness in the market. MACD is moving upward in positive region, which indicates increasing bullish momentum. However, stochastic is also positive in neutral region. The prices are likely to remain on the positive side.

TRADE RECOMMENDATION

Contract	Call	Entry	T1	T2	SL	S2	S1	PCP	R1	R2
MCX-Mar	Buy	> 20950	21000	21050	20920	20800	20887	20971	21144	21230

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

Previous Research Reports

Mar 7 2007 9:47AM
7th March 2007 Bullion Report
Gold prices edged higher Tuesday as concerns of global economic slowdown eased after the bounce back in stock markets

Mar 6 2007 9:55AM
6th March 2007 Bullion Report
Gold prices slipped further in sympathy with sharp fall in Asian and European stock markets

Mar 5 2007 11:27AM
5th March 2007 Bullion Report
Gold prices plunged on the last trading day of the week on concerns of global slowdown and weakness in demand in Asia after recent volatility in the global stock markets

Mar 3 2007 9:43AM
3rd March 2007 Bullion Report
Gold prices plunged on the last trading day of the week on concerns of global slowdown and weakness in demand in Asia

Mar 2 2007 9:40AM
2nd March 2007 Bullion Report
Markets looks all set to reverse the trend as bargain hunting begins later in the day

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