Precious metals witnessed a sharp recovery in the latter half of the season after a weak opening as a bullish oil-price forecast by Goldman Sachs boosted inflation-hedge buying and weak dollar provided support to the prices. Gold futures rose nearly 2 percent on Thursday, reversing the previous session's sharp decline.

The euro rose against the dollar as ECB President Jean-Claude Trichet kept the central bank interest rates unchanged for some time.

Gold edged up in the last trading session due to fresh buying as a hedge against inflationary concerns. This complex looks good for the day as we can see some more buying in this complex. We recommend buying Gold and Silver at every dip during the day.

Gold moved lower in first session, but moved up to 14870 by closing, taking support at 14666 (near previous low). Thus, Gold traded range bound and closed higher. Gold is also seen taking support at 21 days MA at 14658. Gold can move up above this crucial level. The RSI also took support of the MA and moved up. Looking at the ADX, it is clear that price movement is direction less.

However, breaching 14950 levels, prices may see upside momentum. In addition, if prices break the support at 14650 levels, it may trigger downside in gold till 14450-500 levels.

Silver gave a weekly low of 23421 during the day. However, it pulled higher later in the Session to 24395 and closed at top at 24362 Which is positive for Silver. The up-trend line in Silver is still intact but took resistance at 24370 at close. Thus, breaching 24400 levels can trigger further upside in Silver.