Market Commentary

Ø Overnight gains in the dollar saw gold open lower at 1641.50/1642.50 with it reaching its intraday low of 1640/1641 soon after. Strong buying as the EUR rallied took the metal to its intraday high of 1662/1663 justafter the P.M. fix. Light profit taking saw gold close the week at 1655.50/1656.50.

Ø Silver opened lower at 32.17/32.22 and reached its intraday low of 32.14/32.19 soon after. Tracking gains in base metals and crude, silver reached its intraday high of 32.70/32.75 mid morning. Light profit taking took the metal to its close of 32.55/32.60.

Technical Commentary

Ø Gold had a bearish close to the week at 1656. There is key support on the weekly chart from the long term uptrend, currently around 1581. Key resistance is around 1790, around the highs from late February and early March. On the daily chart, the next major support is at 1625, the 61.8% Fibonacci retracement of the December to February uptrend.

Ø Silver also closed the week lower, at 32.60. Key support on the weekly chart is at 29.12, the 50% retracement of the long term uptrend. Support on the daily chart is at 31.82, the 50% Fibonacci retracement of the rally from December through February. The broken support level at 33.00 now acts as resistance. The Gold-Silver ratio is closing the week higher at 50.8, targeting resistance at the February high around 51.9.

Technical levels for 19^th Mar, 2012:

Metal	Support ($/oz)	Resistance ($/oz)
Gold	1,642.58	1,669.80
Silver	32.123	33.226

Economic Calendar:

Date	Economic Indicator	Country	Actual	Forecast	Previous	Effect & Remarks
19th Mar	Current Account	EUR	Pending at 6:00pm	3.3	2.0	If Actual > Forecast = Good for currency. Difference in value between imported and exported goods, services, income flows, and unilateral transfers during the previous month.
16th Mar	Core CPI m/m	USD	0.1%	0.2%	0.2%	As Actual < Forecast =Not Good for currency. Change in the price of goods and services purchased by consumers, excluding food and energy has Decreased.
16th Mar	Prelim UoM Consumer Sentiment	USD	74.3	75.8	75.3	As Actual < Forecast =Not Good for currency. Level of a composite index based on surveyed consumers 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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