Market Commentary

Ø Gold opened almost unchanged at 1655.25/1656.25. Robust selling after the open quickly took the metal to its intraday low of 1641.75/1642.75. After resting for awhile near this level, gold then found upward momentum as equities gained, eventually reaching its intraday high of 1662/1663 mid day. Quietly trading in a range afterward, the metal closed the session at 1659.25/1660.25.

Ø Silver opened higher at 30.25/30.30. Tracking base metals, silver slid lower to an intraday low of 29.98/30.03 early morning. Rebounding in tandem with hard commodities, silver reached an intraday high of 30.59/30.64 mid day. The metal ended the session in quiet range bound trading at 30.54/30.59.

Technical Commentary:

Ø Gold is closing higher today at current 1657. The metal has gone up 11 of the past 14 days in a move that has come from late December low of 1523. We remain below key technical level at 1667 which is viewed as a critical pivot. The pressure the past two weeks has been higher but the big collapse off 1803 still overhangs the price picture. The 200 day moving average currently sits at 1640. Our down side support is seen at 1605.

Ø Silver is firmer today at 30.50. Similar to Gold there is a major technical pivot just overhead at 30.71. Silver has been moving higher all January following the end of year liquidation to 26.20. The Gold Silver ratio has dropped back to key technical level at 54.35. This is the base of our 1 month range. A close below 54.00 will bring in sellers of the ratio looking for a return to the 50.00 area.

Technical levels for 19^th Jan, 2012:

Metal	Support ($/oz)	Resistance ($/oz)
Gold	1,645.41	1,675.17
Silver	29.953	30.870

Economic Calendar:

Date	Economic Indicator	Country	Actual	Forecast	Previous	Effect & Remarks
19th Jan	Building Permits	USD	Pending at 7:00pm	0.68	0.68	If Actual > Forecast = Good for currency. Annualized number of new residential building permits issued during the previous month.
19th Jan	Unemployment Claims	USD	Pending at 7:00pm	387	399	If Actual < Forecast = Good for currency. The number of individuals who filed for unemployment insurance for the first time during the past week.
18th Jan	PPI m/m	USD	-0.1%	0.1%	0.3%	As Actual < Forecast = Not Good for currency. Change in the price of finished goods and services sold by producers have Decreased.
18th Jan	TIC Long-Term Purchases	USD	59.8	27.3	4.8	As Actual > Forecast = Good for currency. Difference in value between foreign long-term securities purchased by US citizens and US long-term securities purchased by foreigners during the reported period has Increased.

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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.RSBL SPOT - Daily Market Alert

Market Commentary

Ø Gold opened almost unchanged at 1655.25/1656.25. Robust selling after the open quickly took the metal to its intraday low of 1641.75/1642.75. After resting for awhile near this level, gold then found upward momentum as equities gained, eventually reaching its intraday high of 1662/1663 mid day. Quietly trading in a range afterward, the metal closed the session at 1659.25/1660.25.

Ø Silver opened higher at 30.25/30.30. Tracking base metals, silver slid lower to an intraday low of 29.98/30.03 early morning. Rebounding in tandem with hard commodities, silver reached an intraday high of 30.59/30.64 mid day. The metal ended the session in quiet range bound trading at 30.54/30.59.

Technical Commentary:

Ø Gold is closing higher today at current 1657. The metal has gone up 11 of the past 14 days in a move that has come from late December low of 1523. We remain below key technical level at 1667 which is viewed as a critical pivot. The pressure the past two weeks has been higher but the big collapse off 1803 still overhangs the price picture. The 200 day moving average currently sits at 1640. Our down side support is seen at 1605.

Ø Silver is firmer today at 30.50. Similar to Gold there is a major technical pivot just overhead at 30.71. Silver has been moving higher all January following the end of year liquidation to 26.20. The Gold Silver ratio has dropped back to key technical level at 54.35. This is the base of our 1 month range. A close below 54.00 will bring in sellers of the ratio looking for a return to the 50.00 area.

Technical levels for 19^th Jan, 2012:

Metal	Support ($/oz)	Resistance ($/oz)
Gold	1,645.41	1,675.17
Silver	29.953	30.870

Economic Calendar:

Date	Economic Indicator	Country	Actual	Forecast	Previous	Effect & Remarks
19th Jan	Building Permits	USD	Pending at 7:00pm	0.68	0.68	If Actual > Forecast = Good for currency. Annualized number of new residential building permits issued during the previous month.
19th Jan	Unemployment Claims	USD	Pending at 7:00pm	387	399	If Actual < Forecast = Good for currency. The number of individuals who filed for unemployment insurance for the first time during the past week.
18th Jan	PPI m/m	USD	-0.1%	0.1%	0.3%	As Actual < Forecast = Not Good for currency. Change in the price of finished goods and services sold by producers have Decreased.
18th Jan	TIC Long-Term Purchases	USD	59.8	27.3	4.8	As Actual > Forecast = Good for currency. Difference in value between foreign long-term securities purchased by US citizens and US long-term securities purchased by foreigners during the reported period has Increased.

.

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.