Daily Market Alert

Market Commentary:

Ø Gold eased overnight, opening at 1630.00/1631.00, before commencing a steady slide lower as investors sold on dollar strength. After triggering stops around 1618.00 and 1600.00 the metal eventually traded down to a low of 1564.00/1565.00. The commodity later recovered as equities recouped, taking the metal to a close of 1583.00/1584.00.

Ø Silver slipped overnight, opening at 29.97/30.02, before trading through resting stops at 29.50 and 28.90. We eventually traded to a low 28.49/28.54 where some physical interest was seen. The metal later recovered as dollar gains diminished, taking us to a close of 28.88/28.93.

Technical Commentary:

Ø Gold is weaker today at current 1575. The metal broke its 200 day moving average at 1619. This is the first time since January 2009 at $851 that Gold has traded below the 200 day ma. Key support for Gold is seen at 1538 from the September low and 3 year bullish trend line. We expect sellers of Gold on any pull back to the 200 day ma and to 1667 the former November low.

Ø Silver is weaker today at current 28.62. The break of mid Nov low at 30.71 has focus to the September and January low near 26.10/ 26.43. The break of 26.00 would suggest that a 100% reversal to August 2010 low of 17.77 is a real possibility. The Gold Silver ratio at 54.92 has made a break higher through critical 61.8% Fibo at 54.35. While we remain above 54.35 the risk is to 59.70 the 76.4% Fibo of the 1 year drop.

Technical levels for 15^th Dec, 2011:

Metal	Support ($/oz)	Resistance ($/oz)
Gold	1,532.90	1,643.57
Silver	27.654	31.062

Economic Calendar:

Date	Economic Indicator	Country	Actual	Forecast	Previous	Effect & Remarks
15th Dec	Philly Fed Manufacturing Index	USD	Pending at 8:30pm	5.1	3.6	If Actual > Forecast = Good for currency. Level of a diffusion index based on surveyed manufacturers in Philadelphia.
14th Dec	Import Prices m/m	USD	0.7%	1.0%	-0.6%	As Actual < Forecast =Not Good for currency. Change in the price of imported goods and a service purchased domestically has Decreased.
14th Dec	Crude Oil Inventories	USD	-1.9	-2.2	1.3	As Actual > Forecast =No consistent effect - there are both inflationary and growth implications. Change in the number of barrels of crude oil held in inventory by commercial firms during the past week has Increased.

Disclaimer:

This report contains the opinion of the author, which is not to be construed as investment advices. The author, Directors, other employees of RiddiSiddhi Bullions Ltd. and its affiliates cannot be held responsible for the accuracy of the information presented herein or for the results of the positions taken based on the opinions expressed above. The above-mentioned opinions are based on the information, which is believed to be accurate, and no assurance can be given for the accuracy of the information. The author, directors and other employees and any affiliates of RSBL cannot be held responsible for any losses in trading. In no event should the content of this research report be construed as an express or an implied promise, guarantee or implication by or from RSBL that the reader or client will profit or the losses can or will be limited in any manner whatsoever. Past results are no indications of future performance. Information provided in this report is intended solely for informative purposes and is obtained from sources believed to be reliable. The information contained in this report is no way guaranteed. No guarantee of any kind is implied or possible where projections of future conditions are attempted. We do not offer any sort of portfolio advisory, portfolio management or investment advisory services. The reports are only for information purpose and are not to be construed as investment advices.