Market Commentary

Ø Gold opened higher at 1725.75/1726.75. Gaining on conflicting news out of Iran regarding oil shipments being cutoff to certain countries, gold reached an intraday high of 1737/1738 on safe haven buying. Profit taking however, erased gold’s gains as equities declined. The metal eventually ended the session on its intraday low of 1725.50/1726.50.

Ø Stronger base metals and crude overnight saw silver open higher at 33.73/33.78 with it reaching its intraday high of 33.94/33.99 soon after. Profit taking throughout the day, as the dollar gained, took silver to its intraday low of 33.30/33.35 late in the session. Silver ended the session shortly after at 33.39/33.44.

Technical Commentary:

Ø Gold closed higher today at 1725/26, breaching trendline support at 1720 on an intraday basis. Key support is in the 1706 area and resistance is at last week’s high around 1752.

Ø Silver also closed slightly lower on the candlestick charts at 33.39/44. which has proved to be strong support. A clear break of 33.00 would be Silver is slowly making a rounding top formation with a base at 33.00, bearish. 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 ugust

Ø 2011 highs. The Gold-Silver ratio has closed higher at 51.74.

Technical levels for 16^th Feb, 2012:

Metal	Support ($/oz)	Resistance ($/oz)
Gold	1,718.80	1,737. 67
Silver	33.023	33.858

Economic Calendar:

Date	Economic Indicator	Country	Actual	Forecast	Previous	Effect & Remarks
16th Feb	PPI m/m	USD	Pending at 7:00pm	0.3%	-0.1%	If Actual > Forecast = Good for currency. Change in the price of finished goods and services sold by producers.
16th Feb	Unemployment Claims	USD	Pending at 7:00pm	364	358	If Actual < Forecast = Good for currency. The number of individuals who filed for unemployment insurance for the first time during the past week.

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