Market Commentary

Ø Overnight gains in the dollar saw gold open lower at 1698.50/1699.50.Range bound for the day, gold reached an intraday low of 1692/1693 mid morning and an intraday high of 1704/1705 mid session. The metal ended the day at 1699.25/1700.25 in quiet trading.

Ø Overnight declines in base metals and crude over greater fears of a slowdown in China’s economy saw silver open lower at 33.60/33.65. In quiet trading, silver reached its intraday high of 33.92/33.97 early morning then light profit taking took the metal to its intraday low of 33.34/33.39 late in the session. Silver soon ended the day at 33.40/33.45.

Technical Commentary

Ø Gold closed lower today at 1699, essentially trading sideways since thebig drop on February 29th. Gold remains vulnerable to another leg lower, testing key support at 1656 (the 50% Fibonacci retracement of the short-term uptrend). Resistance is at 1726, the March high.

Ø Silver also closed lower at 33.40 and is also in a sideways trend. There is support around 33.00 which has held for the past few sessions. Key resistance is from the broken uptrend line, currently at 36.00, and closer by at 34.92 from last Monday’s high. The Gold-Silver ratio is trading higher at 50.7 and has now closed decisively above 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 13^th Mar, 2012:

Metal	Support ($/oz)	Resistance ($/oz)
Gold	1,689.90	1,713.99
Silver	33.128	34.171

Economic Calendar:

Date	Economic Indicator	Country	Actual	Forecast	Previous	Effect & Remarks
13th Mar	Core Retail Sales m/m	USD	Pending at 6:00pm	0.8%	0.7%	If Actual > Forecast = Good for currency. Change in the total value of sales at the retail level, excluding automobiles.
13th Mar	Retail Sales m/m	USD	Pending at 6:00pm	1.1%	0.4%	If Actual > Forecast = Good for currency. Change in the total value of sales at the retail level.
12th Mar	Federal Budget Balance	USD	-231.7	-229.2	-27.4	As Actual < Forecast = Not Good for currency. Difference in value between the federal government's income and spending during the previous month has Decreased.

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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