Precious metals traded slightly up on Monday following the depreciation in rupee backed by outflow of funds on the concerns of instability arising from the nuclear test conducted by North Korea.

Gold and Silver prices rose by 0.4% and 0.8% respectively on MCX.

The world's largest gold-backed exchangetraded fund, the SPDR Gold Trust <GLD, said its holdings stayed at 1,118.76 tonnes as of May 25, unchanged from May 22. South Africa's gold output fell by 10% to 49,713.6 kg in the first quarter of 2009 compared with the fourth quarter of 2008.

Gold is expected to trade sideways to up during the day as weaker dollar and geopolitical tensions seem to be lending support to precious metals.

However, we recommend traders to book profits prior to U. S. consumer confidence data expected by evening as any positive numbers in this report may trigger profit taking in Gold. Silver too looks firm for the day.

Gold prices are seen in the positive territory since the last few sessions. The ADX indicates cross-over of +DI over the – DI, thus Gold looks positive. Gold Prices can move upward during the session. However, resistance for gold can come in at 14800 levels. Thus, one should enter in gold at lower levels of around 14550-600, and book profits around 14770-850 levels.

Silver prices are continuously moving up after taking support at the 50% retracement at 21650 levels. Silver prices are expected to remain positive. However, resistance can come in at 23000-23100 levels. Thus, one can book profits around this resistance area. If Silver manages to breach this 23100 levels and maintains above this levels for more than two sessions, new buying can come in pushing it to the levels of 24000 in near-term.