Market Commentary

Ø Gold opened higher at 1737.25/1738.25 with it dipping to an intraday low of 1731.50/1732.50 shortly after. The metal regained upward momentum after news of Greece reaching an agreement and eventually made an intraday high of 1752.50/1753.50 just after a strong equity open. Erratic trading for the remainder of the day took gold to its closeat 1738/1739.

Ø Silver opened higher at 34.02/34.07. After an initial dip to its intraday low of 33.82/33.87 soon after, the metal regained upward traction alongside strong gains in crude and base metals. After reaching an intraday high of 34.42/34.47 profit taking then took the metal to its close at 33.91/33.96.

Technical Commentary:

Ø Gold is closing higher today at 1738. The metal has been tracking a nice bullish channel off of the 1523 December low. The current parameters of the channel come in at 1722 and 1799. Further topside resistance is seen at 1762 from last week’s high which also corresponded with the late December high. We would only expect to see Gold selling pressure on a break of 1710, this week’s low.

Ø Silver is unchanged at 33.90. Silver has also been tracking a nice bullish channel off the 26.20 December low. Current price is drifting through the base of the channel at 33.89 but we do not see stop loss selling until below 33.00 support. Topside level on the channel comes in at 36.33. The Gold Silver ratio has been moving lower in a well defined bearish channel with price closing today at 51.07. Parameters currently reside at 49.18 and 51.95. We see Fibo support at the 50.00 level (50% of major down move).

Technical levels for 10^th Feb, 2012:

Metal	Support ($/oz)	Resistance ($/oz)
Gold	1,720.00	1,746. 65
Silver	33.563	34.393

Economic Calendar:

Date	Economic Indicator	Country	Actual	Forecast	Previous	Effect & Remarks
10th Feb	Trade Balance	USD	Pending at 7:00pm	-48.1	-47.8	If Actual > Forecast = Good for currency. Difference in value between imported and exported goods and services during the reported month.
10th Feb	Prelim UoM Consumer Sentiment	USD	Pending at 8:25pm	74.4	75.0	If Actual > Forecast = Good for currency. Level of a composite index based on surveyed consumers.
9th Feb	Unemployment Claims	USD	358	380	367	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.

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.