Market Commentary

Ø Gold opened slightly higher at 1700/1701. The metal quickly reached its intraday low of 1676.75/1677.75 alongside strong declines in the EUR. Gold recovered as fast as it came down however. A strong resurgence of buying sent gold higher, triggering resting stops around 1693 and again at 1700 levels, to eventually reach its intraday high of 1714/1715 mid session. Quiet range bound trading for the remainder of the day saw the metal close the week at 1710/1711

Ø Silver gained overnight alongside crude and base metals to open higher at 33.90/33.95. As commodities turned lower, silver also gave up its gains to reach an intraday low of 33.10/33.15 early morning. However, a strong recovery after promising jobs data, saw renewed buying in the metal and after resting stops near the 33.72 and 34.00 levels, eventually reached its intraday high of 34.40/34.45 late in the session. The metal soon ended the week at 34.17/34.22.

Technical Commentary:

Ø Gold formed a doji in the weekly candlestick chart, meaning it closed close to unchanged at 1711. The long-term uptrend off the 2008 low remains intact, with key support from the trendline coming in around 1573. Resistance is at 1803, the November high. On the daily chart, the decisive break of the short-term uptrend on February 29th was bearish. Gold has spent the past week consolidating, but is still vulnerable to another leg lower, testing key support at 1656 (the 50% Fibonacci retracement of the short-term uptrend).

Ø Silver closed down slightly on the week, at 34.22, managing to hold (on a closing basis), support at 34.00, which represents the 38.2% Fibonacci retracement of the long-term uptrend. Silver remains vulnerable to test the next support at the 50% Fibo level at 29.12. Resistance is at last week’s high at 37.47. The Gold-Silver ratio closed the week at 50.00, still staying within 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 12^th Mar, 2012:

Metal	Support ($/oz)	Resistance ($/oz)
Gold	1,688.32	1,725.92
Silver	33.443	34.681

Economic Calendar:

Date	Economic Indicator	Country	Actual	Forecast	Previous	Effect & Remarks
12th Mar	Federal Budget Balance	US	Pending at 11:30pm	-229.2	-27.4	If Actual > Forecast = Good for currency. Difference in value between the federal government's income and spending during the previous month.
9th Mar	Non-Farm Employment Change	US	227K	209K	243K	As Actual > Forecast = Good for US Currency. Change in the number of employed people during the previous month, excluding the farming industry has Increased.
9th Mar	Trade Balance	US	-52.6	-48.9B	-48.8B	As Actual < Forecast =Not Good for US Currency. Difference in value between imported and exported goods and services during the reported month has Decreased.
9th Mar	Unemployment Rate	US	8.3%	8.3%	8.3%	As Actual = Forecast =No impact for US Currency. Percentage of the total work force that is unemployed and actively seeking employment during the previous month.

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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