Bullions Technical Forcast for 18th March 09

Mondays Weekly Chart

Spot gold steady after overnight fall on low U.S. inflation, surge in U.S. housing starts, unexpected bounce in German investor sentiment, which combine to undermine gold's safe-haven appeal, says HSBC analyst James Steel. Outcome of FOMC meeting unlikely to have impact on gold, HSBC doesn't expect change in interest rate policy; meeting to conclude later in global day. IMF officials expect global economy to contract 0.6%, down from sluggish 0.5% growth in forecast made in January. Steel adds slower economy, disinflationary environment consistent with lower gold prices. On plus side, investor demand for ETF remains brisk, but rise in ETF gold holdings may be partly offset by mounting scrap supplies, continuing weakness in global jewelry demand. .

Trading Call : Gold April Sell @ 15080 targeting 15000 - 14950 - 14860 S/L @ 15160

Silver May Sell @ 21630 targeting 21500 - 21370 - 21240 S/L @ 21740