Market Commentary

Ø Gold opened lower at 1707.75/1708.75, but at the same as yesterday’s open. A quiet ending to the week had gold trading within a range today. Reaching its intraday low of 1704.50/1705.50 at the fix, it then recovered quickly, reaching its intraday high of 1716/1717 shortly after. The metal ended unchanged on the day at 1708/1709.

Ø Silver opened lower at 34.85/34.90. Gaining alongside a struggling rally in base metals and crude, silver reached its intraday high of 35.03/35.08 mid session. With the upward momentum ebbing, steady selling took silver to close the day on its intraday low of 34.44/34.49.

Technical Commentary:

Ø Gold is closing lower today at current 1713. The metal stayed inside of yesterday’s range suggesting further consolidation of Wednesday's $100 drop. The range Wednesday was bigger then the whole month of February suggesting stop losses were triggered on both sides of the market (1790 to 1690). This week’s price action is bearish and we wouldexpect fresh liquidation of long Gold positions on a move below 1690.

Ø Silver is weaker at 34.69. This week the metal reached a fresh cycle high of 37.46 before collapsing to 34.22. The close back below previous October cycle high of 35.65 has our technical attention back to 33.16 (the 38.2% retracement of 26.20 to 37.46 up move). The Gold Silver ratio is showing as another down week at 49.42. The formation itself is a"Hammer" which is a possible reversal warning. A higher close next week would shift our view from bearish to bullish.

Technical levels for 3^rd Mar, 2012:

Metal	Support ($/oz)	Resistance ($/oz)
Gold	1,703.47	1,724.10
Silver	34.100	35.135

Economic Calendar:

Date	Economic Indicator	Country	Actual	Forecast	Previous	Effect & Remarks
5th Mar	ISM Non-Manufacturing PMI	USD	Pending at 8:30pm	56.1	56.8	If Actual > Forecast = Good for currency. Level of a diffusion index based on surveyed purchasing managers, excluding the manufacturing industry.
2nd Mar	German Retail Sales m/m	EUR	-1.6%	0.5%	0.1%	As Actual < Forecast =Not Good for currency. Change in the total value of inflation-adjusted sales at the retail level, excluding automobiles and gas stations have Decreased.

Disclaimer:

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