praveen

Gold proved to be the darling of the day traders yesterday. Beginning the day benignly at about $905 level it rose and rose, through a series of regular ups and downs, till it hit the high of $914.50, the highest for a most-active contract since April 23. By then the NY market was in full bloom and the plunge came in most unexpectedly, taking the price back to levels where the day had begun. The yellow metal rose to the highest in three weeks as surging energy costs boosted demand for the precious metal as a hedge against inflation. Silver also gained.

In economic indicators the index of leading U.S. economic indicators rose in April for a second month, the first back-to-back gain since October 2006, signaling that the current slowdown will be short-lived. The Conference Board's gauge increased 0.1 percent, better than forecast and matching the gain in March. (The measure points to the direction of the economy over the next three to six months.) Consequently the dollar gained to $1.5512 per euro.

In another development crude oil reached $127.77 a barrel yesterday, approaching the record high from May 16 before erasing gains. Crude oil rose to near all-time high price amid skepticism that Saudi Arabia's decision to increase output by 300,000 barrels a day will be sufficient to reduce prices. The Saudi announcement followed a meeting between President George W. Bush and King Abdullah. The desert kingdom, which is the world's largest oil exporter and the most influential member of the Organization of Petroleum Exporting Countries, will boost production by about 3.3 percent to 9.45 million barrels a day in June, Oil Minister Ali al-Naimi said in Riyadh on May 16. The gain won't subdue prices because they have been driven higher by the weak U.S. Dollar and not supply, OPEC President Chakib Khelil said yesterday. Khelil said the output increase represented a "sovereign decision" on the part of Saudi Arabia, rather than an agreement that had the backing of OPEC. Khelil spoke in an interview in Algiers where he is attending a conference.

The precious metals today may remain in consolidation mode. Last three days have been good ones, but yesterday the prices seemed to be getting lethargic at higher levels. However crude continued to support whole-heartedly. Meanwhile the euro is also supporting at 1.55+. So though the risk of crude's shadow remains on precious metals, they seem to be safe today and during the rest of the week.

Share khan...

My views are but at every dip. ..

due to global inflation and rise in oil prices and, dip in $.

aryanlov

give me technikal analysis on gold august