Market Commentary

Ø Gold opened lower at 1653.50/1654.50, also its intraday high. The metal saw continued downward pressure as the dollar gained, eventually reaching its intraday low of 1639.25/1640.25 soon after. Languishing near the low range of the day for the remainder of the session, gold eventually closed at 1642.25/1643.25.

Ø Silver opened lower at 32.85/32.90 and reached its intraday high of 33.09/33.14 mid day as crude gained. Commodities were, however, under too much pressure over fear of China’s slowdown and silver followed declines in base metals and a strong reversal of crude’s early gains. The metal eventually reached an intraday low of 2.02/32.07 late in the day and then closed shortly after at 32.19/32.24.

Technical Commentary

Ø Gold dropped bearishly through our Fibo support level, closing at 1642. The next key support level is 1625, the 61.8% Fibonacci retracement of the December to February uptrend. A definitive close below this support level opens up a full retracement to the December low of 1522. Resistance is at the breached 50% Fibo level at 1656, the previous support.

Ø Silver also suffered a big drop today to 32.19 (and trading lower since the close). Silver is hovering just above the F50% Fibo support level at 31.82; but the breakdown through strong support around 33.00 was bearish and leaves silver vulnerable to test 30.48, the 61.8% Fibo. A definitive close below this key support opens up the December low of 26.16. Resistance is at 33.00, the previous support. The Gold-Silver ratio is currently trading at 51.3, and breached the 38.2% Fibonacci retracement level at 51.72 on an intraday basis. The next resistance is 52.97, the 50% retracement level.

Technical levels for 15^th Mar, 2012:

Metal	Support ($/oz)	Resistance ($/oz)
Gold	1,613.26	1,684.78
Silver	31.123	33.321

Economic Calendar:

Date	Economic Indicator	Country	Actual	Forecast	Previous	Effect & Remarks
15th Mar	PPI m/m	USD	Pending at 6:00pm	0.5%	0.1%	If Actual > Forecast = Good for currency. Change in the price of finished goods and services sold by producers.
15th Mar	Unemployment Claims	USD	Pending at 6:00pm	357K	362K	If Actual < Forecast = Good for currency. The number of individuals who filed for unemployment insurance for the first time during the past week.
14th Mar	Current Account	USD	-124B	-114B	-110B	As Actual < Forecast =Not Good for currency. Difference in value between imported and exported goods, services, income flows, and unilateral transfers during the previous quarter has Decreased.
14th Mar	Import Prices m/m	USD	0.4%	0.6%	0.3%	As Actual < Forecast =Not Good for currency. Change in the price of imported goods and services purchased domestically have 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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