Market Commentary

Ø Overnight comments about the Greek measures not going far enough and that any aid may be held back spooked investors into safe haven buying. With the dollar stronger, gold opened lower at 1709.50/1710.50. After making a quick dip to its intraday low of 1704.60/1705.60, renewed buying interest at these levels took gold to its intraday high of 1724.50/1725.50 mid session. Languishing here for the remainder of the day, the metal eventually finished the week at 1722.50/1723.50.

Ø With base metals and crude prices crushed overnight, silver opened lower at 33.30/33.35. Reaching an intraday low of 33.15/33.20 soon after, the metal found renewed buying interest alongside gains in gold. After managing to climb its way back to an intraday high of 33.83/33.88 mid session, silver then gave back some on profit taking to close the day at 33.60/33.65.

Technical Commentary:

Ø Gold is closing lower for the second consecutive week at current 1717. We see 1706 as an important support for the metal as it represents the 23.6% pull back of our 1523 to 1763 up move. A break of 1706 opens 1671 the 38.2% Fibo. Resistance is found at 1763 followed by November high 1803. Gold appears to be consolidating its strong four week up move. Only a break of 1706 sours the bullish direction.

Ø Silver is showing a similar picture of Gold. The metal is closing slightly lower this week at current 33.49. The 23.6% Fibo of the 26.20 to 35.51 comes in at 32.55. The metal has not been able to trade back below 33.00 so there is likely more topside risk in Silver. With that in mind, the Gold Silver ratio should push lower. The past three Friday’s has seen the ratio close near current 51.27. Down side support is at October low 49.33 with resistance back at 52.50.

Technical levels for 13^th Feb, 2012:

Metal	Support ($/oz)	Resistance ($/oz)
Gold	1,697.35	1,744. 30
Silver	32.980	34.230

Economic Calendar:

Date	Economic Indicator	Country	Actual	Forecast	Previous	Effect & Remarks
10th Feb	Trade Balance	USD	-48.8	-48.1	-47.8	As Actual < Forecast =Not Good for currency. Difference in value between imported and exported goods and services during the reported month has Decreased.
10th Feb	Prelim UoM Consumer Sentiment	USD	72.5	74.4	75.0	As Actual < Forecast =Not Good for currency. Level of a composite index based on surveyed consumers 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.