Market Commentary:

Ø Gold eased overnight, opening at 1611.00/1612.00, before improving on dollar weakness. Selling as equities and the EUR turned took the metal to an intraday low of 1606.00/1607.00.Traded inline with equities for the rest of the session, reaching an intraday high of 1618.00/1619.00 before concluding the day at 1611.00/1612.00.

Ø Silver slipped overnight, commencing at 29.25/29.30 before bouncing to an intraday high of 29.56/29.61. Range trading for most of the rest of `the session until selling interest at the end of the day took us to a close of 29.22/29.27.

Technical Commentary:

Ø Gold rallied above the 200-day moving average today, but was rejected and closed down slightly lower at 1611/1612. The failure above the 200 dma is a bearish development which will weigh on gold in the near term. Also, the rally off the December 15th low has lacked momentum – we have formed 3 doji's in the candlestick charts in the past 5 trading sessions. The 200-dma is now at 1623 and continues to provide resistance. Support sits at the December 15th low at 1560 followed by key support at the September 26th low of 1532.

Ø Silver closed lower today at 29.22/27. Silver has been in a sideways trend since the steep sell-off on December 14th, and has met strong resistance 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 continues to grind higher at 55.09, after its breakout from a large triangle. It traded down through the breakout level intraday, was rejected, and closed higher, a bullish signal.

Technical levels for 22^th Dec, 2011:

Metal	Support ($/oz)	Resistance ($/oz)
Gold	1,597.41	1,635.79
Silver	28.818	29.898

Economic Calendar:

Date	Economic Indicator	Country	Actual	Forecast	Previous	Effect & Remarks
22th Dec	Unemployment Claims	USD	Pending at 7:00pm	376	366	If Actual < Forecast = Good for currency. The number of individuals who filed for unemployment insurance for the first time during the past week.
21th Dec	Existing Home Sales	USD	4.42	5.04	4.97	As Actual < Forecast =Not Good for currency. Annualized number of residential buildings that were sold during the previous month, excluding new construction has Decreased.

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.