Market Commentary:

Ø A strong dollar overnight had gold open lower at 1536.75/1537.75. Reaching an intraday low of 1525.25/1526.25 ahead of equities open, the metal reversed its early losses on renewed buying interest as equities gained. Strong bids took the metal to its intraday high of 1541.50/1542.50 just before closing the day at 1539/1540.

Ø Depressed base metals overnight had silver open lower at 26.59/26.64.Slipping to an intraday low of 26.34/26.39 early morning as crude declined, silver re-gained upward momentum as bids came back into the market as equities and base metals rallied. Silver eventually reached an intraday high of 27.35/27.40 shortly before ending the session at 27.33/27.38.

Technical Commentary:

Ø Spot gold closed lower today at 1539/40 after breaking the September 26th lows today on an intraday basis. Gold also breached, and closed below, the uptrend established off the July 30/10 intermediate low. The longer-term uptrend off the October 2008 low remains intact but was breached on an intraday basis and is likely to be re-tested and breached in the short term. Support from this trendline sits at 1538, followed by key Fibonacci support at 1448 (the 38.2% retracement of the 3-year uptrend). Resistance sits at the December 16th highs around 1715.

Ø Silver made a fresh intraday low but managed to close higher at 27.33/38, forming a hammer in the candlestick charts. While this can be a reversal warning after a pronounced downtrend, we would need a higher close tomorrow to confirm a short-term reversal. Silver managed to hold the September low in the low 26's and this continues to provide support. Resistance sits at 28.81, around yesterday's high. The Gold-Silver ratio rallied intraday to a fresh high of 58.26, but closed lower at

Technical levels for 30^th Dec, 2011:

Metal	Support ($/oz)	Resistance ($/oz)
Gold	1,514.89	1,590.57
Silver	26.136	28.788

Economic Calendar:

Date	Economic Indicator	Country	Actual	Forecast	Previous	Effect & Remarks
29th Dec	Unemployment Claims	USD	381	372	364	As Actual > Forecast =Not Good for currency. The number of individuals who filed for unemployment insurance for the first time during the past week has Increased.
29th Dec	Pending Home Sales m/m	USD	7.3%	1.7%	10.4%	As Actual > Forecast = Good for currency. Change in the number of homes under contract to be sold but still awaiting the closing transaction, excluding new construction 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.