Market Commentary

Ø Gold opened a little lower at 1722.25/1723.25. Trading erratically after disappointing U.S. growth data, gold eventually reached an intraday low of 1718/1719. The metal recovered alongside strong gains in the EUR to eventually reach an intraday high of 1734.75/1735.75 late in the session. Gold ended the week at 1732.50/1733.50.

Ø Silver opened lower at 33.58/33.73 with it reaching an intraday low shortly after, of 33.28/33.33, alongside declines in base metals. Recovering in line with gains in crude, silver reached an intraday high of 33.93/33.98 midsession. Sideways trading for the remainder of the day had the metal close the week at 33.77/33.82.

Technical Commentary:

Ø Gold had a very strong finish to the week, closing higher on both the daily and weekly chart at 1732/33, the 4th up week in a row. The next significant hurdle on the weekly chart is the previous top in the 1800 level, from mid November. Closer by, resistance is at 1737, which is the 76.4% Fibonacci retracement of the November-December downtrend. Key support sits at 1696, the 61.8% retracement of the same downtrend. RSI has approached overbought levels (currently 71.50); however, is confirming the uptrend.

Ø Silver also had its 4th consecutive up-week, closing higher at 33.77/82. Resistance sits at 34.00, the 38.2% Fibonacci retracement of the 2008 to 2011 uptrend. Key support sits at 29.12, the 50% retracement of the rally. On the daily chart, support is at 33.01 and resistance at 34.63. The Gold-Silver ratio closed lower at 51.32.

Technical levels for 30^th Jan, 2012:

Metal	Support ($/oz)	Resistance ($/oz)
Gold	1,722.09	1,743.32
Silver	33.352	34.107

Economic Calendar:

Date	Economic Indicator	Country	Actual	Forecast	Previous	Effect & Remarks
30th Jan	Core PCE Price Index m/m	USD	Pending at 7:00pm	0.1%	0.1%	If Actual > Forecast = Good for currency. Change in the price of goods and services purchased by consumers, excluding food and energy.
30th Jan	Personal Spending m/m	USD	Pending at 7:00pm	0.2%	0.1%	If Actual > Forecast = Good for currency. Change in the inflation-adjusted value of all expenditures by consumers.
27th Jan	Advance GDP q/q	USD	2.8%	3.0%	1.8%	As Actual < Forecast = Not Good for currency. Annualized change in the inflation-adjusted value of all goods and services produced by the economy has Decreased.
27th Jan	Revised UoM Consumer Sentiment	USD	75.0	74.2	74.0	As Actual > Forecast = Good for currency. Level of a composite index based on surveyed consumers has Increased.

Disclaimer:

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