Market Commentary

Ø Gold opened on its intraday low of 1647.25/1648.25. Short covering on the start of the Chinese New Year had gold steadily gain throughout the session. Reaching an intraday high of 1666/1667 mid day, gold then rested before giving up small to close the week at 1663.75/1664.75.

Ø Silver opened a little lower at 30.46/30.51 and quickly reached its S&P 500intraday low of 30.40/30.45 soon after. Defying drops in base metals and crude, strong silver buying took the metal to close on its intraday high of 31.71/31.76.

Technical Commentary:

Ø Today marks the close of gold's third consecutive up week and a rally of 10% since its December 29th low of $1522.65. Near term technical’s have turned more bullish, with the MACD having generated a buy signal on January 3rd, and the 9-day moving average having crossed above the 21-day on January 10th. A break above $1667 would be bullish, with psychological resistance looming at $1,700.

Ø Silver has broken a key technical level of resistance at 30.71, the November 2011 low, having gained 1.35 to 31.98 as we approach the North American close. Support continues to be seen at the 9 day MA (30.35), with resistance expected at the 100 day MA (32.68), though some technicals suggest that current levels are overbought. The downward trend in the gold silver ratio has continued and now stands at 51.97 with a downside target of 49.7, the late October 2011 low.

Technical levels for 23^th Jan, 2012:

Metal	Support ($/oz)	Resistance ($/oz)
Gold	1,650.18	1,679.85
Silver	30.950	32.755

Economic Calendar:

Date	Economic Indicator	Country	Actual	Forecast	Previous	Effect & Remarks
20th Jan	Existing Home Sales	USD	4.61	4.65	4.42	As Actual < Forecast = Not Good for currency. Annualized number of residential buildings that were sold during the previous month, excluding new construction has Decreased.

Disclaimer:

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