Market Commentary:
Ø Gold opened slightly higher at 1586.75/1587.75. The metal gained to an intraday high of 1593.50/1594.50 as equities reacted positive to betterthan expected jobs data in the past 3 years. Profit taking on worries over IMF comments made regarding the Euro crisis took gold lower. Triggering resting stops around the 1575 and 1565 levels the metal finally reached its intraday low of 1560/1561 mid morning. Renewed buying had gold recover to close the day at 1574/1575.
Ø Silver benefitted from overnight gains in commodities, opening higher at 29.01/29.06. Tracking declines in base metals and crude, silver reached an intraday low of 28.46/28.51 mid day. As with gold, silver experienced a mini rally, reaching an intraday high of 29.27/29.32 shortly before closing the day at 29.24/29.29.
Technical Commentary:
Ø Spot gold formed a doji in the candlestick charts today, closingis unchanged at 1574/75. This is a pause after the sharp selloff over the past 3 sessions. Key support sits at the September 26th low of 1532. Resistance is at the 200 day moving average at 1618. The RSI is showing Gold is short-term oversold with 14-day RSI at 27. However gold is vulnerable to further weakness with a target at the September 26th low.
Ø Silver made a small bounce after the steep selloff of the past 3 sessions, closing at 29.24/29. Key support for silver sits at the September 26th low around 26.00. Resistance sits at 29.74, the 61.8% Fibonacci retracement of the Sept-Oct uptrend, which was breached yesterday on a closing basis. The Gold-Silver ratio is trading at 53.99, having broken through the top of a large triangle.
Technical levels for 16th Dec, 2011:
| Metal | Support ($/oz) | Resistance ($/oz) |
| Gold | 1,540.09 | 1,621.90 |
| Silver | 27.823 | 30.712 |
Economic Calendar:
| Date | Economic Indicator | Country | Actual | Forecast | Previous | Effect & Remarks |
| 16th Dec | Core CPI m/m | USD | Pending at 7:00pm | 0.1% | 0.1% | If Actual > Forecast = Good for currency. Change in the price of goods and services purchased by consumers, excluding food and energy. |
| 15th Dec | Philly Fed Manufacturing Index | USD | 10.3 | 5.1 | 3.6 | As Actual > Forecast = Good for currency. Level of a diffusion index based on surveyed manufacturers in Philadelphia 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.
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