Market Commentary:

Ø Gold opened lower at 1716.50/1717.50 as the dollar strengthened overnight with investors looking for safety. Slipping lower with declining equities, gold eventually reached its intraday low of 1702/1703 mid morning. Slowly recovering as equities began to pare early morning losses, gold reached an intraday high of 1728.25/1729.25 just before closing the day at 1727.50/1728.50.

Ø Overnight declines in base metals and crude had silver open lower at 31.85/31.90 with it quickly dipping to its intraday low of 31.60/31.65. Rallying as commodities began a modest recovery silver reached an intraday high of 32.72/32.77 shortly before closing the day at 32.68/32.73.

Technical Commentary:

Ø Gold traded sharply lower today, but closed very close to yesterday's close at 1727/28. The 1700 level, the 38.2% retracement of the September to November move, provided support. There is additional support just below there around 1696 from the uptrend off the September 26th low. Resistance sits at yesterday's high in the 1755 area.

Ø Silver closed higher at 32.68/73. Spot silver has essentially been trading sideways since mid-November, and momentum is near zero. There is a major support level around the 50% etracement of the up-move from September to October around 30.87, and we have tested his level at least 3 times since the big drop on November 17th. We are neutral so long as resistance holds at the December 2nd high around 33.70 however, feel that silver is vulnerable to another downside move. We would be bearish on a clean break of the 30.87 support level. The Gold- Silver ratio has still not broken out of its triangle, but closed higher today 52.75. We are looking for an upside break and for gold to outperform silver in the short-term.

Technical levels for 7th Dec 2011:

Metal	Support($/oz)	Resistance ($/oz)
Gold	1,703.71	1,752.59
Silver	32.013	33.351

Economic Calendar:

Date	Economic Indicator	Country	Actual	Forecast	Previous	Effect & Remarks
7th Dec	Crude Oil Inventories	USD	Pending at 9:00pm	-0.8	3.9	If 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.
6th Dec	German Factory Orders m/m	EUR	5.2%	0.9%	-4.3%	As Actual > Forecast = Good for currency. Change in the total value of new purchase orders placed with manufacturers 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.