Market Commentary

Ø Gold opened lower at 1714.25/1715.25. Today’s session was range bound in choppy trading. Reaching an intraday high of 1726.75/1727.75 mid morning profit taking, as the dollar gained, then took the metal to its intraday low of 1712.251713.25. Gold ended the session soon after at 1715.25/1716.25.

Ø With declines in base metals overnight, silver opened lower at 33.39/33.44. Gaining strength alongside rallying crude, the metal reached an intraday high of 33.82/33.87 mid morning. Profit taking then erased silver’s gains as the metal eventually reached an intraday low of 33.25/33.30. Silver closed the day soon after at 33.32/33.37.]

Technical Commentary:

Ø Gold closed lower today at 1715/16, its 5th consecutive close lower. Gold also breached our lower (re-drawn) uptrend line on an intraday basis. Critical support is in the 1706 area and we would be bearish if this level fails to hold. Resistance is at last week’s high around 1752.

Ø Silver also closed lower at 33.32/37, also its 5th consecutive down day. We remain neutral so long as silver holds key support at 33.00.Resistance is at 34.53, last week’s high. Key resistance sits at 35.16, the 50% Fibonacci retracement of the drop in silver from August 2011 highs. The Gold-Silver ratio has closed slightly higher at 51.27 and also continues to be in a sideways trend.

Technical levels for 15^th Feb, 2012:

Metal	Support ($/oz)	Resistance ($/oz)
Gold	1,707.50	1,730. 30
Silver	33.112	33.957

Economic Calendar:

Date	Economic Indicator	Country	Actual	Forecast	Previous	Effect & Remarks
15th Feb	TIC Long-Term Purchases	USD	Pending at 7:30pm	62.3	59.8	If Actual > Forecast = Good for currency. Difference in value between foreign long-term securities purchased by US citizens and US long-term securities purchased by foreigners during the reported period.
14th Feb	Core Retail Sales m/m	USD	0.7	0.6%	-0.2%	As Actual > Forecast = Good for currency. Change in the total value of sales at the retail level, excluding automobiles has Increased.
14th Feb	Import Prices m/m	USD	0.3%	0.3%	-0.1%	As Actual = Forecast =No effect for currency. Change in the price of imported goods and services purchased domestically.

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.