Market Commentary:

Ø Dollar weakness overnight had gold open higher at 1593.25/1594.25. Being range bound for the session, as investors caught their breath over the past 2 days, gold reached an early morning intraday low of 1583/1584 before quickly recovering to its intraday high of 1597/1598 soon after. Sideways trading for the remainder of the session took gold to its close at 1595/1596.

Ø Silver opened higher at 29.62/29.67. Rising with gains in base metals, silver reached an intraday high of 29.79/29.84 mid session. Heavy declines in crude however put pressure on the metal, seeing it slip to its intraday low of 29.30/29.35 early afternoon. Rebounding on strong bids, silver ended the day at 29.58/29.63.

Technical Commentary:

Ø After yesterday's doji, spot gold closed higher today at 1595/96, but is still consolidating the steep losses this week. Resistance sits at the 200 day moving average at 1620. Key support sits at the September 26th low of 1532. On the weekly chart, gold closed sharply lower on the week, but managed to hold the long-term uptrend. Thus the intermediate trend is bearish, but technically the major uptrend is still intact.

Ø Silver also closed higher at 29.58/63, but on a closing basis was not able to clear resistance at 29.74, the 61.8% Fibonacci retracement of the Sept-Oct uptrend. On the weekly chart, silver closed lower but is technically still trading sideways in a consolidation pattern. Key support for silver sits at the September 26th low around 26.00.

Technical levels for 19^th Dec, 2011:

Metal	Support ($/oz)	Resistance ($/oz)
Gold	1,575.89	1,608.13
Silver	28.715	29.953

Economic Calendar:

Date	Economic Indicator	Country	Actual	Forecast	Previous	Effect & Remarks
19th Dec	Current Account	EUR	Pending at 2:30pm	-2.1	0.5	If Actual > Forecast = Good for currency. Difference in value between imported and exported goods, services, income flows, and unilateral transfers during the previous month.
16th Dec	Core CPI m/m	USD	0.2%	0.1%	0.1%	As Actual > Forecast = Good for currency. Change in the price of goods and services purchased by consumers, excluding food and energy 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.