Market Commentary

Ø A stronger dollar overnight saw gold open lower at 1725.25/1726.25 with it dipping to its intraday low of 1723.501724.50 soon after. Quiet range bound trading for the session saw the metal reach an intraday high of 1733/1734 mid morning. Gold ended the session almost unchanged from yesterday’s close at 1731.25/1732.25.

Ø Weaker base metals and crude overnight saw silver open lower at 33.36/33.41 and reaching an intraday low of 33.16/33.21 Silver reversed its decline on a short lived rally in crude to eventuallyreach an intraday high of 33.67/33.72 mid session. Quiet range bound trading for the remainder of the session saw silver close the day at 33.54/33.59.

Technical Commentary:

Ø Spot gold closed slightly lower at 1731/32. RSI has turned downward but is still close to overbought levels at 68.8. Resistance is at 1756, the December 8th high, followed by 1800. Key support sits at 1696, the 61.8% retracement of the November-December downtrend.

Ø Silver retreated slightly, closing at 33.54/59. Resistance sits at 34.00the 38.2% Fibonacci retracement of the 2008 to 2011 uptrend. We have seen support in the low 33.00’s in the past 3 sessions. Resistance is at 34.63, the November 16th high. The Gold-Silver ratio continues to trade sideways, closing at 51.8.

Technical levels for 31^st Jan, 2012:

Metal	Support ($/oz)	Resistance ($/oz)
Gold	1,717.56	1,73.05
Silver	32.806	34.068

Economic Calendar:

Date	Economic Indicator	Country	Actual	Forecast	Previous	Effect & Remarks
31st Jan	CB Consumer Confidence	US	Pending at 8:30pm	68.2	64.5	If Actual > Forecast = Good for US Currency. Financial confidence is a leading indicator of consumer spending, which accounts for a majority of overall economic activity.
30th Jan	Core PCE Price Index m/m	US	0.2%	0.1%	0.1%	As Actual > Forecast = Good for US currency. Change in the price of goods and services purchased by consumers, excluding food and energy has Increased.
30th Jan	Personal Spending m/m	US	0.0%	0.2%	0.1%	As Actual < Forecast = Good for US Currency. Change in the inflation-adjusted value of all expenditures by consumers.

Disclaimer:

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