Market Commentary

Ø Gold opened unchanged at 1745.50/1746.50 and dipped to its intraday low of 1743.75/1744.75. Recovering, as equities gained on positive jobs data, gold was quickly bid higher after the P.M. fix eventually reaching its intraday high of 1760.50/1761.50 mid session. Quiet range bound trading for the remainder of the session took gold to its close at 1756/1757.

Ø Silver held stronger in the face of declining crude and base metals overnight to open almost unchanged at 33.74/33.79. Reaching an intraday low of 33.60/33.65 shortly after, renewed buying interest alongside gold took silver to its intraday high of 34.33/34.38 mid session. Profit taking ahead of tomorrow’s Non-Farm data took the metal to its close at 34.16/34.21.

Technical Commentary:

Ø Spot gold moved further into overbought territory, closing at 1756/57 with RSI at 72.96. Having cleared the December 8th high today, the next resistance is at 1769, which is the 61.8% Fibonacci retracement of gold’s fall from grace in the last quarter of 2011. Gold was strongly rejected at this level in early December. Clearing this level would open up a full retracement back to the September high of 1921. Support sits at 1721, the 50% Fibonacci level, with further key support from the uptrend off the December 29th low, currently around 1700.

Ø Silver also closed higher at 34.16/21. There has been strong support at the 33.00 level for the past week; this is also the 38.2% Fibonacci retracement level of the August-September downtrend. The next resistance is at 34.63, the November 16th high. The gold-silver ratio closed at 51.3.

Technical levels for 3^rd Feb, 2012:

Metal	Support ($/oz)	Resistance ($/oz)
Gold	1,744.73	1,764.73
Silver	33.693	34.825

Economic Calendar:

Date	Economic Indicator	Country	Actual	Forecast	Previous	Effect & Remarks
3rd Feb	Non-Farm Employment Change	USD	Pending at 7:00pm	150	200	If Actual > Forecast = Good for currency. Change in the number of employed people during the previous month, excluding the farming industry.
3rd Feb	Unemployment Rate	USD	Pending at 7:00pm	8.5%	8.5%	If Actual < Forecast = Good for currency. Percentage of the total work force that is unemployed and actively seeking employment during the previous month.
2nd Feb	Unemployment Claims	USD	367	373	377	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.

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