Market Commentary

Ø Gold opened a little higher at 1661/1662 with it quickly reaching an intraday high of 1662.25/1663.25 shortly afterward. An uneventful day for the metal saw it drift lower on light profit taking throughout the day, eventually reaching an intraday low of 1648.50/1649.50 late in the session. The metal recovered slightly to close the day at 1654/1655.

Ø Silver gained overnight, alongside base metals and crude, to open higher at 30.72/30.77 and quickly reached its intraday high of 30.83/30.88. Giving up its gains as commodities reversed lower, silver reached an intraday low of 30.34/30.39 mid morning. Sideways trading for the remainder of the session took silver to its close at 30.52/30.57.

Technical Commentary:

Ø Gold was once again rejected today at the 1667 level. The metal is closing lower today at 1652. We see this 1667 as a massive pivot for the prospects of Gold. If we can close back above the level the medium picture for the metal improves dramatically. If we continue to close below, the risk remains for another significant liquidation move back to 1523. Key support now lies at 1631 the week’s low.

Ø Silver was rejected above 30.71 today and is closing unchanged on the day at current 30.49. Similar to Gold we see this 30.71 a key pivot on the close. Down side support is seen at 29.50, the week’s low. The Gold Silver ratio is closing at the lower end of its 1 month range at 54.22. The move below Fibo 54.35 has so far been a non event. We believe a close below 54.00 will bring in sellers of the ratio looking for a move back to 50.00.

Technical levels for 20^th Jan, 2012:

Metal	Support ($/oz)	Resistance ($/oz)
Gold	1,647.74	1,670.17
Silver	30.300	30.950

Economic Calendar:

Date	Economic Indicator	Country	Actual	Forecast	Previous	Effect & Remarks
20th Jan	Existing Home Sales	USD	Pending at 8:30pm	4.65	4.42	If Actual > Forecast = Good for currency. Annualized number of residential buildings that were sold during the previous month, excluding new construction.
19th Jan	Building Permits	USD	0.68	0.68	0.68	As Actual = Forecast = No impact in currency. Annualized number of new residential building permits issued during the previous month.
19th Jan	Unemployment Claims	USD	352	387	399	As Actual < Forecast = Good for currency. The number of individuals who filed for unemployment insurance for the first time during the past week 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.