Market Commentary

Ø Gold Gold traded lackluster yesterday on reduced volumes on the CEMEX future, waiting for a direction.

Ø Chinese volumes at the Shanghai Gold Exchange were again large at 15, 2 tons, while selling from Index rebalancing was especially evident before the CEMEX close, which pressured Gold below 1610 again.

Ø Asian trading saw risk sentiment improve, despite lower than expected Chinese export growth data.

Ø Shanghai volumes were strong again, which finally drove Gold back above 1620.

Ø Same as yesterday, we still expect selling from Index rebalancing to hold up rallies.

Ø Positive to note is that Chinese demand seems to continue strong, while rather disappointing is that from the ETF side, the buyers are still standing still.

Technical levels for 10^th Jan, 2012:

Metal	Support ($/oz)	Resistance ($/oz)
Gold	1605	1641
Silver	28.00	30.00,30.35