Market Commentary

Ø Gold opened on its intraday low of 1767.25/1768.25. The metal gathered strength, as equities gained from better than expected housing data, eventually reaching its intraday high of 1779/1780 mid morning. Sideways trading for the remainder of the session took the metal to its close at 1773/1774.

Ø opened almost unchanged at 35.28/35.33. Slipping lower as crude declined, silver reached an intraday low of 35.17/35.22 early morning. Silver quickly recovered however, alongside strong gains in base metals, to reach an intraday high of 35.61/35.66 mid session. The metal closed the day at 35.51/35.56.

Technical Commentary:

Ø Gold closed slightly down today at 1773/74. Uptrend support comes in around 1742, and there is also support from last Wednesday’s low at 1749. Resistance is at 1795, from our original uptrend line which was breached to the downside on Feb 10th and is now acting as resistance.

Ø Silver closed almost unchanged at 35.51/56, which is essentially a doji on the candlestick charts. Support is at 35.16, the 50% retracement of the August to December downtrend. The next resistance is at 35.68, the October high. Since Thursday’s big drop in the Gold-Silver ratio, it has had 2 more successive down days, and is now trading sub 50’s at

Technical levels for 28^th Feb, 2012:

Metal	Support ($/oz)	Resistance ($/oz)
Gold	1,758.80	1,779.65
Silver	35.067	35.775

Economic Calendar:

Date	Economic Indicator	Country	Actual	Forecast	Previous	Effect & Remarks
28th Feb	Core Durable Goods Orders m/m	USD	Pending at 7:00pm	0.0%	2.2%	If Actual > Forecast = Good for currency. Change in the total value of new purchase orders placed with manufacturers for durable goods, excluding transportation items.
28th Feb	CB Consumer Confidence	USD	Pending at 8:30pm	63.1	61.1	If Actual > Forecast = Good for currency. Level of a composite index based on surveyed households.
27th Feb	Pending Home Sales m/m	USD	2.0%	1.1%	-3.5%	As Actual > Forecast = Good for currency. Change in the number of homes under contract to be sold but still awaiting the closing transaction, excluding new construction has Increased.

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.