RSBL SPOT ALERTS by CR Team Date: 12th Dec 2011

Market Commentary:

Ø Stronger equities coupled with a lower dollar overnight saw gold open higher at 1717.25/1718.25. Range bound for the day had gold reach an intraday low of 1706.50/1707.50 early morning. Rebounding as equities gained the metal reached an intraday high of 1719.75/1720.75 mid session. Quiet trading for the remainder of the day took gold to its close at 1712.50/1713.50.

Ø Overnight gains in base metals saw silver open higher at 31.90/31.95. Paring an early morning slide to its intraday low of 31.71/31.76, silver recovered on stronger crude and base metals to eventually reach an intraday high of 32.32/32.37 mid session. Quiet trading for the remainder of the session saw silver close at 32.20/32.25.

Technical Commentary:

Ø Gold is closing lower this week at 1713. The price range shows as an 'inside week' from last week’s range. When you consider the 3 month range of 1538 to 1920 we are nearly right at the 50% level of 1729. The metal looks to be coiling into a consolidation triangle waiting to break out higher or lower. Key levels to watch remain 1693 and 1761.

Ø Silver is closing lower this week at 32.22, also showing as an "inside week". Key support and resistance levels are seen at 31.17 and 33.64. The Gold Silver ratio is closing the week slightly lower at 53.18. Once again the critical 54.35 has held the topside. This level represents the 61.8% Fibo of last years drop and has held the Sept/Nov and Dec rallies. We believe a break of 54.35 will result in a quick move to 59.70. A break back below 52.00 will bring in sellers.

Technical levels for 12th Dec 2011:

Metal	Support($/oz)	Resistance ($/oz)
Gold	1,695.38	1,745.08
Silver	31.448	33.128

Economic Calendar:

Date	Economic Indicator	Country	Actual	Forecast	Previous	Effect & Remarks
9th Dec	Trade Balance	USD	-43.5	-43.5	-43.1	As Actual = Forecast = No Impact for currency. Difference in value between imported and exported goods and services during the reported month.
9th Dec	Prelim UoM Consumer Sentiment	USD	67.7	65.6	64.1	AS Actual > Forecast = Good for currency. Level of a composite index based on surveyed consumers 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.