Market Commentary

Ø Gold opened lower at 1714.75/1715.75 and quickly dipped to its intraday low of 1714/1715. With equities rallying back to positive and theEUR making strong gains on optimism of Greece concluding a deal soon, gold made steady gains. The metal reached its intraday high of 1747/1748 late in the session and then ended the day soon after at 1745.75/1746.75.

Ø After a night of lower crude and base metal prices, silver opened lower at 33.40/33.45. Reaching an intraday low of 33.29/33.34 mid morning, the metal then recovered alongside rallying commodities. Steadily gaining throughout the session, silver closed the day on its intraday high at 34.21/34.26.

Technical Commentary:

Ø Spot gold had a strong rebound today, closing higher at 1745/46. On the candlestick charts, this was an outside day key reversal and is bullish. Gold also held the steep uptrend support just above 1700. Support is at 1712, yesterday’s low, and resistance at 1763, last Friday’s high.

Ø Silver also closed higher, at 34.21/26. There continues to be strong support at 33.00. Resistance is at 34.38, Thursday’s high. The Gold-Silver ratio is unchanged at 51.00.

Technical levels for 8^th Feb, 2012:

Metal	Support ($/oz)	Resistance ($/oz)
Gold	1,722.64	1,762.15
Silver	33.525	34.720

Economic Calendar:

Date	Economic Indicator	Country	Actual	Forecast	Previous	Effect & Remarks
8th Feb	Crude Oil Inventories	USD	Pending at 9:00pm	2.9	4.2	If No consistent effect - there are both inflationary and growth implications. Change in the number of barrels of crude oil held in inventory by commercial firms during the past week.
7th Feb	German Industrial Production m/m	EUR	-2.9%	-0.1%	-0.6%	As Actual< Forecast =Not Good for currency. Change in the total inflation-adjusted value of output produced by manufacturers, mines, and utilities has Decreased.

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.