Gold witnessed a major downside movement on Monday following strong appreciation in rupee and expectations of better housing data from U. S. It inched down by Rs. 623 on MCX and closed at Rs. 14206 in the last trading session. COMEX Gold also declined by $9.5 and ended the day at $922.4.

The world's largest gold-backed exchangetraded fund, the SPDR Gold Trust, said its holdings stood at 1,105.62 tonnes as of May 18, unchanged from the previous business day.

The Indian rupee strengthened past 48 per dollar for the first time in nearly five months after the ruling coalition won a clear election victory and the stock market surged 17.2 percent.

Precious Metals have been victimized because of stronger dollar and stability in financial market is also triggering a sell off in precious metals. Gold and Silver expected to trade down during the day as stronger rupee is likely to weigh on precious metals complex. We recommend selling Gold and Silver at rise during the day.

Gold prices declined sharply in the previous session, taking the prices below the shortterm upwards channel. The prices are now expected to take support at the 14000-13900 levels. Selling pressure can prevail for the day, we recommend selling gold on rise during the day.

Silver fell sharply to 21600 levels (50 % Retracement from recent top of 23180). The MACD line also is seen shrinking; however it is still in the positive territory. Thus, Silver is expected to take Support at 21250 levels (61.8 %), if it breaks 21600 levels today.