Market Commentary:

Ø Gold opened slightly lower at 1595.25/1596.25 dipping to its intraday low of 1593.50/1594.50 shortly after. Despite gains in the dollar and declines in equities, worries of Euro banks needing to raise capital saw the metal gain from safe haven buying. After eventually reaching an intraday high of 1616.50/1617.50 late in the session, gold then soon ended the day at 1612/1613.

Ø Weaker base metals and crude prices overnight had silver open the day lower at 29.08/29.13 with it quickly dipping to its intraday low of 28.91/28.96. A brief mid morning rally in crude brought back silver bids leading up to an intraday high of 29.53/29.58. Silver gave up its day’s gains on profit taking just before closing the day at 29.11/29.16.

Technical Commentary:

Ø Gold has closed higher today at 1613. This is the 4th consecutive higher close off of last week’s low of 1523. We see resistance at the 200 day moving average at 1632 and at 1641 the Mid December high. From a Fibonacci retracement perspective, we could see selling at 1629 which marks the 38.2% bounce of the 1802 to 1523 down leg. The 50% level is seen at 1663.

Ø Silver has dropped today back to 29.12. Yesterday was oneof the biggest 1 day up moves for the metal since October. We see significant support near multi 2011 low of 26.10 / 26.20. The 38.2% Fibo level of the Nov to Dec fall of 35.65 to 26.20 comes in at 29.81. The Gold Silver ratio jumped higher today to 55.41. It is interesting the ratio was ot able to hold below key 54.35 level. We believe that the risk for both Gold and Silver remains for weakness while the Ratio holds above 54.35.

Technical levels for 5^th Jan, 2012:

Metal	Support ($/oz)	Resistance ($/oz)
Gold	1,598.05	1,625.55
Silver	28.792	29.700

Economic Calendar:

Date	Economic Indicator	Country	Actual	Forecast	Previous	Effect & Remarks
5th Jan	Unemployment Claims	USD	Pending at 7:00pm	375	381	If Actual < Forecast = Good for currency. The number of individuals who filed for unemployment insurance for the first time during the past week.
5th Jan	ISM Non-Manufacturing PMI	USD	Pending at 8:30pm	53.0	52.0	If Actual > Forecast = Good for currency. Level of a diffusion index based on surveyed purchasing managers, excluding the manufacturing industry.
4th Jan	Factory Orders m/m	USD	1.8%	1.9%	-0.4%	As Actual > Forecast =Not Good for currency. Change in the total value of new purchase orders placed with manufacturers 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.