Market Commentary

Ø Overnight investor anxiety over the global economy sent the dollar higher and gold lower, opening on its intraday high of 1684/1685. The metal saw steady but orderly selling early on but then collapsed to its intraday low of 1663/1664 just ahead of strong declines in the opening of equity markets. The metal recovered a little to close the day at 1670.75/1671.75.

Ø Strong overnight declines in commodities saw silver open lower at 33.12/33.17. Initial gains to its intraday high of 33.25/33.30 were erased as silver took its cue from gold and fell to its intraday low of 32.45/32.50 by mid day. Late session buying managed to give a small boost to the metal, taking it to its close at 32.77/32.82.

Technical Commentary:

Ø Gold is closing lower again at current 1673. The metal broke key support 1693 this morning triggering fresh liquidation down to 1665. We see initial support at 1656, the 50% of our last up move. Risk remains for a deeper correction to 1625 the 61.8% Fibo. The $100 drop last week off 1790 was the warning flag for a bearish turn in Gold. Big picture, the 3.5 year bullish trend line is now seen at 1591. We expect sellers now on any move back to 1700.

Ø Silver has fallen to current 32.77. We are nearly $5 lower than last Thursday’s 37.46 high. A close below the February low of 32.69 will bring in fresh selling of the metal. We see 31.83 and 30.50 as the 50% and 61.8% Fibo supports from the 26.20 to 37.46 up move. We expect sellers of Silver now at 33.16. The Gold Silver ratio has moved higher today to 51.05. The February high of 51.81 offers initial resistance. ratio has moved up from 48.26 over the past 5 trading sessions.

Technical levels for 7^th Mar, 2012:

Metal	Support ($/oz)	Resistance ($/oz)
Gold	1,653.06	1,706.64
Silver	31.945	34.385

Economic Calendar:

Date	Economic Indicator	Country	Actual	Forecast	Previous	Effect & Remarks
7th Mar	ADP Non-Farm Employment Change	USD	Pending at 6:45pm	204	170	If Actual > Forecast = Good for currency. Estimated change in the number of employed people during the previous month, excluding the farming industry and government.

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.

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