Market Commentary:

Ø Benefitting from a weaker dollar overnight, gold opened higher at 1586/1587 with a slight drop to its intraday low of 1585.75/1586.75 quickly after. Positive global economic data saw the metal further its gains alongside the rise in equities to eventually reach an intraday high of 1607/1608 mid session. Quiet trading for the remainder of the day saw gold close at 1600/1601.

Ø Strong base metals and crude overnight saw silver open higher at 28.56/28.61 which happened to be its intraday low as well. Rallying with other commodities, silver reached an intraday high of 29.73/29.78 mid session. Quiet trading took the metal to its close at 29.58/29.63.

8:30pm

Technical Commentary:

Ø Gold is closing higher today at 1,600. This is the third consecutive up day for the metal off of December cycle low of 1523. We see close resistance at 1607 from last week’s high. The key resistance on a close basis lies at the 1630 level which represents the 200 day moving average. We believe that while the 200 day ma holds, the risk remains for another visit to the 1523 area.

Ø Silver is closing higher at 29.60. This is the fourth consecutive up day off of last week’s low of 26.20. We see short term resistance at 29.81, which is the 38.2% Fibo of our 35.65 to 26.20 down move. The Gold Silver ratio is closing back below key 61.8% Fibo at 54.35. The close 8:30pmat 54.10 suggests that Gold may start to underperform Silver for the first time in weeks. A close below 53.00 will trigger more long Gold/Silver liquidation.

Technical levels for 4^th Jan, 2012:

Metal	Support ($/oz)	Resistance ($/oz)
Gold	1,577.41	1,618.87
Silver	28.420	30.298

Economic Calendar:

Date	Economic Indicator	Country	Actual	Forecast	Previous	Effect & Remarks
4th Jan	Factory Orders m/m	USD	Pending at 8:30pm	1.9%	-0.4%	If Actual > Forecast = Good for currency. Change in the total value of new purchase orders placed with manufacturers.

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.