RSBL SPOT ALERTS by CR Team Date: 5th Dec 2011

Market Commentary:

Ø Overnight rally in commodities had gold open higher at 1758.75/1759.75 with it gaining to an intraday high of 1763/1764 quickly after. The metal gave up these early gains as investors switched to safety after rumours about a Spanish downgrade and the U.S. crafting a bill to prevent the use of IMF funds for a Eurozone bailout. With treasuries gaining, gold slipped to its intraday low of 1741.25/1742.25 mid day. Sideways trading for the remainder of the session had gold close at 1747.25/1748.25.

Ø Silver opened stronger at 33.56/33.61, quickly gaining to its intraday high of 33.66/33.71. Following gold, silver dropped to an intraday low of 32.51/32.56 mid day. Quiet trading then took the metal to its close at 32.60/32.65.

Technical Commentary:

Ø Gold closed slightly higher today at 1747/48. This was a bullish close to the week, up from 1684 last week. Support sits at the intraday lows in the 1741 area, and resistance at the November 17th high of 1767, followed by a full retracement of the November move back up to 1803.

Ø Silver closed slightly lower at 32.60/65 after having made a new 2-week intraday high around 33.67. Despite the lack of follow through today, this was a higher close on the weekly chart. Support sits at the 38.2% retracement of the Sept-October move, at 32.00. Resistance sits at the November 17th high around 33.99. The Gold-Silver ratio is approaching the apex of a symmetrical triangle; however, the close today was lack lustre at 53.59. We are watching for a clear break of the triangle above 54.65.

Technical levels for 5th Dec 2011:

Metal	Support($/oz)	Resistance ($/oz)
Gold	1,737.66	1,758.84
Silver	32.172	33.407

Economic Calendar:

Date	Economic Indicator	Country	Actual	Forecast	Previous	Effect & Remarks
5th Dec	ISM Non-Manufacturing PMI	USD	Pending at 8:30pm	53.6	52.9	If Actual > Forecast = Good for currency. Level of a diffusion index based on surveyed purchasing managers, excluding the manufacturing industry.
5th Dec	Factory Orders m/m	USD	Pending at 8:30pm	-0.2%	0.3%	If Actual > Forecast = Good for currency. Change in the total value of new purchase orders placed with manufacturers.
2nd Dec	Unemployment Rate	USD	8.6%	9.0%	9.0%	As Actual < Forecast =Not Good for currency. Percentage of the total work force that is unemployed and actively seeking employment during the previous month has Increased.
2nd Dec	Non-Farm Employment Change	USD	120	126	100	As Actual < Forecast =Not Good for currency. Change in the number of employed people during the previous month, excluding the farming industry 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.