Market Commentary:

Ø Gold improved overnight, opening at 1603.00/1604.00, before climbing to an intraday high of 1618.00/1619.00 as investors moved into risk on the back of a weaker dollar and better than expected housing data. The metal stayed within a tight range for the remainder of the session, concluding the day at 1615.25/1616.25.

Ø Taking cue from gold, silver enhanced overnight, commencing at 29.28/29.33 before rising alongside equities and base metals. Range trading for most of the rest of the session until fund interest took the metal to an intraday high of 29.59/29.64 just prior to concluding the session at 29.51/29.56.

Technical Commentary:

Ø Gold closed higher today at 1615/16, still consolidating the losses from December 14th. The 200 day moving average at 1622 provided resistance. The next resistance sits at 1642, the high from Dec 14th. Support sits at the December 14th low at 1563 followed by key support at the September 26th low of 1532.

Ø Silver regained a good part of yesterday's losses, closing higher at 29.51/56. Resistance sits at 29.74, the 61.8% Fibonacci retracement of the Sept-Oct uptrend. Key support sits at the December 15th low around 28.13. The Gold-Silver ratio is trading lower today at 54.74. Support sits at 54.11, the 61.8% Fibonacci retracement of the collapse down from 68.69 in August 2010 to 30.51 in April 2011.

Technical levels for 21^st Dec, 2011:

Metal	Support ($/oz)	Resistance ($/oz)
Gold	1,597.32	1,635.05
Silver	28.897	29.992

Economic Calendar:

Date	Economic Indicator	Country	Actual	Forecast	Previous	Effect & Remarks
21th Dec	Existing Home Sales	USD	Pending at 8:30pm	5.04	4.97	If Actual > Forecast = Good for currency. Annualized number of residential buildings that were sold during the previous month, excluding new construction.
20th Dec	Building Permits	USD	0.68	0.63	0.64	As Actual > Forecast = Good for currency. Annualized number of new residential building permits issued during the previous month 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.