Market Commentary

Ø Gold slipped overnight, opening at 1664.50/1665.50, before trading down to an intraday low of 1661.00/1662.00. Overall a quiet session with the metal trading inline with equities while the market focused on Greek debt negotiations. The metal traded to an intraday high of 1669.75/1670.75 prior to concluding the day at 1664.00/1665.00.

Ø Silver eased overnight, commencing at 32.12/32.17, before retreating towards 32.00. The metal recovered inline with equities, trading to an intraday high of 32.32/32.37 until selling interest at the end of the session took us to a low of 31.90/31.95 and a close of 31.98/32.03.

Technical Commentary:

Ø After a trading range similar to yesterdays, Gold closed slightly lower at 1665. This leaves the short-term technical outlook neutral given the weaker close. Support sits at the 200-day moving average at 1644. Resistance sits at 1700, where we saw good support in November to early December. On the weekly chart, gold is still respecting the uptrend off the October 2008 low, with key support at 1550.

Ø Silver formed a doji in the candlestick charts today, closing close to unchanged at 32.03. This is a sign of indecision, and may signal a correction in the very near-term. Key support sits at 29.12, the 50% Fibonacci retracement of the 2008 to 2011 rallies, and resistance at 34.00, the 38.2% Fibonacci level. The Gold-Silver ratio closed higher at 52.02.

Technical levels for 25^th Jan, 2012:

Metal	Support ($/oz)	Resistance ($/oz)
Gold	1,657.24	1,679.70
Silver	31.657	32.675

Economic Calendar:

Date	Economic Indicator	Country	Actual	Forecast	Previous	Effect & Remarks
25th Jan	Pending Home Sales m/m	USD	Pending at 8:30pm	-0.6%	7.3%	If Actual > Forecast = Good for currency. Change in the number of homes under contract to be sold but still awaiting the closing transaction, excluding new construction.
24th Jan	French Flash Manufacturing PMI	EUR	48.5	49.2	48.9	As Actual < Forecast = Not Good for currency. Level of a diffusion index based on surveyed purchasing managers in the manufacturing industry has Decreased.
24th Jan	German Flash Services PMI	EUR	54.5	52.6	52.4	As Actual > Forecast = Good for currency. Level of a diffusion index based on surveyed purchasing managers in the services industry 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.