Market Commentary

Ø Gold opened slightly lower at 1609.25/1610.25. As the dollar gained,gold slid to an intraday low of 1596.75/1597.75 early morning. Renewed buying interest, as equities turned toward the positive, took gradually higher all day. The metal topped out at its intraday high of 1619.50/1620.50 just before closing the session at 1618.25/1619.25.

Ø Silver opened a little lower at 29.01/29.06. Declining crude and base metals saw silver quickly slide to its intraday low of 28.69/28.74 soon after. As commodities began to recover, silver pared its early morning loss to eventually reach an intraday high of 29.42/29.47. The metal soon ended the day at 29.30/29.35.

Technical Commentary:

Ø Gold is closing higher at current 1622. This is the 5th consecutive up day in a move that started off of last week’s 1523 low. It looks like the market is going to test the 38.2% retracement level at 1629. A close above the 200 day ma at 1632 is needed to shift the market Neutral from Bearish. Resistance is seen at 1641 mid December high and then 1663 the 50% level.

Ø Silver has taken back some of yesterday’s losses to 29.42. We see 29.81 as the 38.2% retracement level from the Nov-Dec liquidation from 1 Month Commodity Moves 35.65 to 26.20. The Gold Silver ratio is closing today unchanged near 55.19. We believe the key 61.8% Fibo level at 54.35 is an important market barometer. While above 54.35, the risk for both Gold and Silver is another drop back toward their recent lows.

Technical levels for 6^th Jan, 2012:

Metal	Support ($/oz)	Resistance ($/oz)
Gold	1603	1634.91
Silver	28.688	29.836

Economic Calendar:

Date	Economic Indicator	Country	Actual	Forecast	Previous	Effect & Remarks
6th Jan	Non-Farm Employment Change	US	Pending at 7 pm	152K	120K	If Actual > Forecast = Good for US Currency. Change in the number of employed people during the previous month, excluding the farming industry
6th Jan	Unemployment Rate	US	Pending at 7 pm	8.7%	8.6%	If Actual < Forecast = Good for US Currency. Percentage of the total work force that is unemployed and actively seeking employment during the previous month.
5th Jan	Unemployment Claims	USD	372K	375	381	As Actual <Forecast = Good for US Currency. The number of individuals who filed for unemployment insurance for the first time during the past week has Decreased.
5th Jan	ISM Non-Manufacturing PMI	USD	52.6	53.0	52.0	As Actual <Forecast = Not Good for US Currency. Level of a diffusion index based on surveyed purchasing managers, excluding the manufacturing 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.