Market Commentary

Ø Gold opened a little higher at 1747.25/1748.25 and reached its intraday high of 1748/1749 mid morning. Fading optimism on a Greek resolution had investors look for safety. With the dollar gaining, gold slid to its intraday low of 1723.50/1724.50 late in the session. The metal closed the day soon after at 1728/1729.

Ø Silver opened slightly higher at 34.33/34.38 after a night of higher base metals and crude prices. The metal reached its intraday high of 34.38/34.43 mid morning before commodities turned lower. Profit taking took the metal to its intraday low of 33.65/33.70 mid day. Silver ended the session at 33.70/33.75.

Technical Commentary:

Ø Spot gold closed lower today at 1728/29, and both MACD and RSI have turned down. However, gold held the Fibonacci support level at 1721 and trendline support just above 1700. Resistance is at 1763, last Friday’s high.

Ø Silver closed down at 33.70/75 and like gold, both MACD and RSI have turned downwards. Silver continues to trade sideways with strong support at 33.00 and resistance at 35.16, the 50% Fibonacci retracement of the August-September 2011 downtrend. The Gold-Silverratio closed slightly higher at 51.2.

Technical levels for 9^th Feb, 2012:

Metal	Support ($/oz)	Resistance ($/oz)
Gold	1,721.38	1,748.565
Silver	33.565	34.530

Economic Calendar:

Date	Economic Indicator	Country	Actual	Forecast	Previous	Effect & Remarks
9th Feb	Unemployment Claims	USD	Pending at 7:00pm	380	367	If Actual < Forecast = Good for currency. The number of individuals who filed for unemployment insurance for the first time during the past week.
8th Feb	Crude Oil Inventories	USD	0.3	2.9	4.2	As Actual < Forecast = 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 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.