Market Commentary

Ø Greater optimism towards a successful Greek debt swap saw gold open higher at 1698/1699 as the dollar declined. Bouncing quickly to its intraday high of 1702/1703, light profit taking then took the metal to its intraday low of 1688.75/1689.75 shortly after the fix. Range bound for the remainder of the day, gold then closed the session almost unchanged at 1697.50/1698.50 as investors wait upon Friday’s Nonfarm payroll data.

Ø Silver opened higher at 33.79/33.84 with it touching its intraday high of 34.00/34.05 soon after. Tracking declines in base metals and crude, silver reached an intraday low of 33.34/33.39 mid morning. Following gold, silver closed the day almost unchanged at 33.76/33.81.

Technical Commentary:

Ø Gold is closing higher at 1697/98, consolidating Tuesday’s range. Support is at 1656, the 50% Fibonacci retracement of the December to February rally, followed by critical support at the 61.8% Fibo level of 1625. Resistance is at Tuesday’s high in the 1709 area.

Ø Silver also closed higher at 33.76/81, consolidating Tuesday’s selloff. A close below 33.15, the 38.2% retracement of the December to February rally, will bring in more sellers. The next support is at the 50% Fibo level of 31.82. Resistance is at 34.92, Monday’s high. The Gold-Silver ratio is trading at 50.3, down just slightly from yesterday and trading right around the top of the down-channel that has been in place since late December. The next resistance is at the February high around 51.9.

Technical levels for 9^th Mar, 2012:

Metal	Support ($/oz)	Resistance ($/oz)
Gold	1,686.14	1,710.89
Silver	33.329	34.197

Economic Calendar:

Date	Economic Indicator	Country	Actual	Forecast	Previous	Effect & Remarks
9th Mar	Non-Farm Employment Change	US	Pending at 7:00pm	209K	243K	If Actual > Forecast = Good for US Currency. Change in the number of employed people during the previous month, excluding the farming industry.
9th Mar	Trade Balance	US	Pending at 7.00pm	-48.9B	-48.8B	If Actual > Forecast = Good for US Currency. Difference in value between imported and exported goods and services during the reported month.
9th Mar	Unemployment Rate	US	Pending at 7.00pm	8.3%	8.3%	If Actual < Forecast = Good for US Currency. Percentage of the total work force that is unemployed and actively seeking employment during the previous month.
7th Mar	ADP Non-Farm Employment Change	USD	216K	204	170	As Actual > Forecast = Good for US currency. Estimated change in the number of employed people during the previous month, excluding the farming industry and government 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.

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