Market Commentary

Ø The decline in the dollar coupled with speculation of China easing monetary and fiscal policies to boost their economy had assets higher overnight. Gold was no exception, opening higher at 1635.75/1636.75 and quickly reaching its intraday high of 1640.25/1641.25 soon after. After being range bound near this level for most of the day, the metal then slid lower as the EUR declined. Gold reached an intraday low of 1629.75/1630.75 just before ending the session at 1630.50/1631.50.

Ø Silver opened higher at 30.03/30.08 and quickly reached its intraday high of 30.31/30.36 alongside strong gains in base metals and crude. Slightly retreating, the metal settled into range bound trading for the day. Profit taking shortly before the close, took silver to its intraday low of 29.79/29.84. Silver ended the session soon after at 29.82/29.87.

Technical Commentary:

Ø Gold is stronger today at current 1633 which is very near its 200 day average at 1635. The mid December high of 1641 is the closest resistance followed by 1674. The 1674 marks the 38.2% pull back of the 1920 to 1523 six month range. The move higher today was not expected as it was against a bearish picture. We believe it will take a number of days of closes above 200 day ma to give the bulls confidence to re enter the market.

Ø Silver made a nice move higher today to current 29.91. The mid December high near 30.19 still holds the topside with critical bearish Elliot wave level seen at 30.71. Support is found at this week’s low of 28.61. The Gold Silver ratio is closing lower today at 54.52. We remain above key Fibo support seen at 54.35. Resistance is seen at yesterday’s high of 55.85.

Technical levels for 11^th Jan, 2012:

Metal	Support ($/oz)	Resistance ($/oz)
Gold	1613.90	1649.31
Silver	29.122	30.495

Economic Calendar:

Date	Economic Indicator	Country	Actual	Forecast	Previous	Effect & Remarks
11th Jan	Crude Oil Inventories	USD	Pending at 9:00pm	0.9	2.2	If No consistent effect - there are both inflationary and growth implications. Change in the number of barrels of crude oil held in inventory by commercial firms during the past week.

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.