Market Commentary

Ø Investor worries over a Greek default saw the dollar strong overnight and gold opening lower at 1717.50/1718.50. Very quiet range bound trading with no economic data for the day, saw gold reach an intraday low of 1711.10/1712.10 shortly after the open and an intraday high of 1724.75/1725.75 mid session. The metal quietly closed the day at 1721.75/1722.75.

Ø Lower commodities overnight saw Silver opened the day lower at 33.28/33.33. As with gold, silver experienced a quiet range bound session. The metal reached an intraday low of 32.97/33.02 just after the open and an intraday high of 33.75/33.80 just before the close. Silver ended the day at 33.72/33.77.

Technical Commentary:

Ø Following Friday’s weak close and Doji in the weekly candlesticks, spot gold closed lower today at 1721/22, right at the 50% Fibonacci retracement level of gold’s downtrend from August to December 2011. Resistance sits at Friday’s high around 1763. There is trendline support from the steep up-trend off the December 29th low, currently sitting around 1700.

Ø Silver closed close to unchanged from Friday, at 33.72/77. The 33.00 level again proved to be strong support today, as it has been since January 26th. Resistance sits at 34.00, and silver continues to trade sideways. The Gold-Silver ratio also continues to trade sideways, closing today at 51.00.

Technical levels for 7^th Feb, 2012:

Metal	Support ($/oz)	Resistance ($/oz)
Gold	1,701.56	1,754.44
Silver	33.043	34.412

Economic Calendar:

Date	Economic Indicator	Country	Actual	Forecast	Previous	Effect & Remarks
7th Feb	German Industrial Production m/m	EUR	Pending at 4:30pm	-0.1%	-0.6%	If Actual > Forecast = Good for currency. Change in the total inflation-adjusted value of output produced by manufacturers, mines, and utilities.

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.