Market Commentary

Ø Gold opened almost unchanged at 1755/1756. Profit taking just after the open had the metal reach an intraday low of 1749/1750. Gold then settled into quiet range bound trading until late into the session. Strong short covering, as equities began to rally back, took gold to its intraday high of 1772.50/1773.50 just before closing the day at 1769/1770.

Ø Silver opened lower at 34.01/34.06 after overnight declines in base metals and crude. The metal reached its intraday low of 33.89/33.94 just after the open and like gold, settled into quiet range trading. The late day rally in commodities pumped up silver to its intraday high of 34.40/34.45. The metal closed the day shortly after at 34.23/34.28.

Technical Commentary:

Ø Gold made new 2012 highs today at 1773 and closed just shy of the high at 1770. RSI is confirming the trend; although it has moved into overbought territory at 70.52. The MACD has also generated a buy signal. There is good support at the low of 1749, where there is also support from a fan line (i.e., an uptrend that was re-drawn with a lower slope when the original uptrend line was breached Feb 14/15). Since the close, spot has moved to new highs, and the 1770 level should provide some support. The next target is 1803, the November high.

Ø Silver closed close to unchanged at 34.28, remaining in its sideways trend. It has yet to clear the February 8th highs at 34.53, and RSI and MACD are both moving sideways. We remain neutral until we see a close above the previous high. There remains strong support at 33.00. The Gold-Silver ratio is closing higher at 51.7, but remains in a sideways trend.

Technical levels for 22^th Feb, 2012:

Metal	Support ($/oz)	Resistance ($/oz)
Gold	1,757.20	1,789.65
Silver	34.019	34.694

Economic Calendar:

Date	Economic Indicator	Country	Actual	Forecast	Previous	Effect & Remarks
23th Feb	Unemployment Claims	USD	Pending at 7:00pm	352	348	If Actual < Forecast = Good for currency. The number of individuals who filed for unemployment insurance for the first time during the past week.
22th Feb	Existing Home Sales	USD	4.57	4.66	4.61	As Actual < Forecast =Not Good for currency. Annualized number of residential buildings that were sold during the previous month, excluding new construction 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.