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Saturday, April 16, 2011

MCX bullion Technical and Fundamental Reports

Silver Market Overview
COMEX Silver is technically strong on charts. Last week COMEX Silver broke its psychological level of 4200$ an ounce and closed above that. For the upcoming week 3900$ and 3750$ are the crucial supports and 4380$ and 4600 $ are crucial resistance in COMEX Silver. In MCX Silver 64500 and 67500 will act as major resistance and 59500 and 57500 will act as major supports.
Technically COMEX Silver is strong on charts, For the next week traders can use buy on lower level strategy if Silver sustains above the level of 4100$ an ounce, then above 4300$ an ounce it can further go upward and can test the level of 4380$ an ounce. Trade by keeping the proper stop losses.
Fundamental Market Overview
Gold rose 1 percent to a record and silver soared on Friday, as inflation worries amid a Crude oil rally and a downgrade of Ireland's sovereign debt powered bullion toward its fifth consecutive weekly gain. Silver rose to its highest in 31 years on speculative buying and tight supplies, and as data showing rising U.S. consumer prices prompted investors to buy precious metals. Silver's outperformance over bullion also sent the Gold/silver ratio below 34 for the first time in nearly 30 years.

Spot Gold rose 0.8 percent to $1,484.10 , having hit a record $1,487.39. U.S. Gold futures for June delivery rose $12.40 to $1,484.80. Silver

gained 1 percent to $42.51. The Gold-to-silver ratio -- showing the relative strength between the two metals -- fell to its lowest since the early

1980s. The small rise in U.S. core inflation, and data showing moderation in long-term inflation expectations may be seen as vindication for

Federal Reserve officials who have viewed the recent energy price spike as having a temporary effect. Gold prices have almost doubled since the

Fed cut interest rates to the bone in 2008 in an attempt to shock the economy back to life after the worst financial crisis since the Great

Depression. Gold also drew support from safe-haven bids on worries over the euro zone financial crisis, after more talk that Greece may be set to

restructure its debt and a Moody's downgrade of Ireland. Among other commodities, U.S. Crude oil rose for a third straight day, as improving

consumer confidence and industrial production boosted the outlook for oil demand. Gold largely ignored news Goldman Sachs ha recommended investors go underweight commodities over a three- to six-month horizon, echoing its call from Monday, saying oil prices were higher than justified by current supply and demand.
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