Market Commentary

Ø Gold opened higher at 1780.25/1781.25. Tracking equities, gold reached an intraday low of 1776/1777 just after the P.M. fix. A rally in equities coupled with declines in the dollar saw gold recover to eventually reach an intraday high of 1790.50/1791.50 mid day. Light profit taking then took the metal to its close at 1786.50/1787.50.

Ø Stronger base metals overnight saw silver open higher at 36.13/36.18. Tracking equities initial decline on their open, silver reached an intraday low of 35.93/35.98. Strong consumer confidence levels however, reversed these declines taking silver to its intraday high of 37.20/37.25 late in the session. The metal closed the day soon after at 37.12/37.17

Technical Commentary:

Ø Gold closed higher at 1786/87 today. There is support at 1749 from last Wednesday’s low and resistance at 1800 from the original uptrend, which was breached to the downside on Feb 10th and is now acting as resistance. RSI is trading higher, confirming the uptrend.

Ø Silver had a huge up-day today, closing at 37.12/17. Having definitively cleared the 50% Fibonacci retracement of the August to December downtrend at 35.16, there is a new Fibonacci level that comes into play. The 61.8% Fibonacci level comes in at 37.30 and should provide some resistance. The next target is 39.78, the September 2011 high. RSI has moved deeper into overbought territory at 78.46 but continues to confirm the uptrend. Note that RSI extended to 88.90 at its peak in April 2011 before silver collapsed. The Gold-Silver ratio collapsed, closing at 48.2, its 4th consecutive down-day. The target on this move is 44.82, the September 22nd low, for a full retracement of the 44.82 o 60.43 up-move.

Technical levels for 28^th Feb, 2012:

Metal	Support ($/oz)	Resistance ($/oz)
Gold	1,770.80	1,794.31
Silver	35.797	37.735

Economic Calendar:

Date	Economic Indicator	Country	Actual	Forecast	Previous	Effect & Remarks
29th Feb	Prelim GDP q/q	USD	Pending at 7:00pm	2.8%	2.8%	If Actual > Forecast = Good for currency. Annualized change in the value of all goods and services produced by the economy.
28th Feb	Core Durable Goods Orders m/m	USD	-3.2%	0.0%	2.2%	As Actual < Forecast =Not Good for currency. Change in the total value of new purchase orders placed with manufacturers for durable goods, excluding transportation items has Decreased.
28th Feb	CB Consumer Confidence	USD	70.8	63.1	61.1	As Actual > Forecast = Good for currency. Level of a composite index based on surveyed households has Increased.

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