Market Commentary

Ø Good news for Greece brought the risk trade back to the forefront after the long weekend. Gold opened on its intraday low of 1739.25/1740.25 and climbed higher as equities gained. The metal topped out at its intraday high of 1757/1758 just before closing the session at 1756.50/1757.50.

Ø Higher base metals and crude overnight saw silver open higher at 33.92/33.97. After an early morning dip to its intraday low of 33.79/33.84, silver regained its momentum upwards alongside strong gains in commodities. The metal reached its intraday high of 34.44/34.49 just before closing the day at 34.41/34.46.

Technical Commentary:

Ø Gold is posting a firmer close at current 1755. The metal is closing in on 2012 high of 1763 after moving sideways between 1705/1763 for the past month. We believe the sideways move has been a consolidation of the 1523 to 1763 up move. A break of 1763 will bring in fresh buying looking for a test of November high 1803.

Ø Silver is closing higher at current 34.34. Similar to Gold, the price of Silver has been going sideways for the past month between a 32.68 and 34.51 range. We believe a break of 34.51 will bring in fresh buying of the metal with view of a test of late October high 35.65. The Gold Silver ratio is lower today at 51.10. The ratio has been heavy since the end of 2011 where it reached 57.50. We see risk of an extension lower in the ratio toward October low 47.70.

Technical levels for 22^th Feb, 2012:

Metal	Support ($/oz)	Resistance ($/oz)
Gold	1,738.16	1,764.16
Silver	33.797	34.694

Economic Calendar:

Date	Economic Indicator	Country	Actual	Forecast	Previous	Effect & Remarks
22th Feb	Existing Home Sales	USD	Pending at 8:30pm	4.66	4.61	If Actual > Forecast = Good for currency. Annualized number of residential buildings that were sold during the previous month, excluding new construction.

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.