Market Commentary

Ø Gold opened slightly lower at 1695/1696. Trading lower alongside the EUR, the metal reached its intraday low of 1683/1684 early morning. Renewed buying interest as equities gained took gold to its intraday high of 1702/1703 mid day. Sideways trading for the remainder of the session saw the metal close the day at 1693.50/1694.50. Gold saw lows near the 1662/1663 levels, after the FOMC kept rates unchanged, in aftermarket trading.

Ø Silver opened higher at 33.56/33.61. Slipping lower inline with early morning declines in base metals and crude, silver reached an intraday low of 33.11/33.16 mid morning. As commodities rallied higher alongside gains in equities, silver reached its intraday high of 33.75/33.80 mid day. The metal closed the session almost unchanged at 33.57/33.62.

Technical Commentary

Ø Gold closed lower today at 1693. We note that the 200-day moving average, currently at 1681, has been providing support on a closing basis for the past week. Nevertheless, gold remains vulnerable to the downside after the breach of its uptrend on February 29th. Key support is at 1656 (the 50% Fibonacci retracement of the short-term uptrend). Resistance is at 1726, the March high.

Ø Silver also closed lower at 33.57, continuing its sideways trend. There continues to be strong support between 33.00 and 33.15. Key resistance is from the broken uptrend line, currently at 36.11, and closer by at 34.92 from last Monday’s high. The Gold-Silver ratio has now had 2 successive closes above the top of its down-channel. It is currently trading at 50.29 and the next target is 51.72 which is the 38.2%retracement of the move down from 58.26 in December to 47.67 on February 29th.

Technical levels for 14^th Mar, 2012:

Metal	Support ($/oz)	Resistance ($/oz)
Gold	1,650.43	1,704.99
Silver	32.745	34.140

Economic Calendar:

Date	Economic Indicator	Country	Actual	Forecast	Previous	Effect & Remarks
14th Mar	Current Account	USD	Pending at 6:00pm	-114B	-110B	If Actual > Forecast = Good for currency. Difference in value between imported and exported goods, services, income flows, and unilateral transfers during the previous quarter.
14th Mar	Import Prices m/m	USD	Pending at 6:00pm	0.6%	0.3%	If Actual > Forecast = Good for currency. Change in the price of imported goods and services purchased domestically.
13th Mar	Core Retail Sales m/m	USD	0.9%	0.8%	0.7%	As Actual > Forecast = Good for currency. Change in the total value of sales at the retail level, excluding automobiles has Increased.
13th Mar	Retail Sales m/m	USD	1.1%	1.1%	0.4%	As Actual = Forecast = No impact for currency. Change in the total value of sales at the retail level.

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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