Market Commentary

Ø Gold opened a little higher at 1760.25/1761.25. Reaching an intraday high of 1761.80/1762.80 just after strong jobs data, the metal then retreated as investors repositioned into equities. Gold eventually reached an intraday low of 1732.75/1733.75 mid morning. Languishing here for the remainder of the session, gold closed the week at 1737.25/1738.25.

Ø Silver opened lower at 33.98/34.03. Trading alongside gold after jobs data, silver reached an intraday high of 34.35/34.40 then retreated on profit taking to an intraday low of 33.30/33.35 mid morning. Recovering throughout the afternoon, silver closed the week at 33.73/33.78.

Technical Commentary:

Ø Spot gold retreated today, closing lower at 1737/38, with RSI dropping below the overbought level to 65. On the weekly chart, there was a doji on the candlestick chart, indicating indecision in the markets following 4 consecutive up-weeks. This may serve as a warning of an interim top. There is key support at the 1550 level from the long-term uptrend. Resistance sits at 1788, the last significant high. On the daily chart, support sits at 1721, the 50% retracement of gold’s August to December downtrend. Resistance sits at 1769, the 61.8% retracement of the same downtrend.

Ø Silver also closed lower at 33.73/78, in range very similar to yesterdays. Silver’s weekly close was also essentially a doji after 4 consecutive up-weeks, warning of a potential interim top. Key long-term support sits at the 24.50 level from the long-term uptrend. On a closing basis, silver has yet to clear resistance at 34.00. Support on the daily chart sits at 33.00. The Gold-Silver ratio closed at 51.5. It has been trading sideways since January 23rd and has found good support in the 51.00 area.

Technical levels for 6^th Feb, 2012:

Metal	Support ($/oz)	Resistance ($/oz)
Gold	1,714.56	1,755.73
Silver	33.225	34.180

Economic Calendar:

Date	Economic Indicator	Country	Actual	Forecast	Previous	Effect & Remarks
3rd Feb	Non-Farm Employment Change	USD	243	150	200	As Actual > Forecast = Good for currency. Change in the number of employed people during the previous month, excluding the farming industry has Increased.
3rd Feb	Unemployment Rate	USD	8.3%	8.5%	8.5%	As Actual < Forecast = Good for currency. Percentage of the total work force that is unemployed and actively seeking employment during the previous month has Decreased.

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