Market Commentary

Ø Gold opened slightly lower at 1653/1654 and made a quick dip to 1652.50/1653.50. After quietly trading ahead of the P.M. fix, gold gained in strength alongside rallying EUR’s and gains in equities. The metal reached its intraday high of 1669.75/1670.75 mid session. Quiet trading for the remainder of the day had gold close at 1667.25/1668..25.

Ø Silver opened on its intraday low of 32.37/32.42. Tracking gains in base metals and crude, silver reached an intraday high of 33.05/33.10 mid session. Quiet trading for the remainder of the session saw silver close at 32.91/32.96.

Technical Commentary

Ø Gold closed higher today at 1667; consolidating the latest down-move last Wednesday. Support is at 1625, the 61.8% Fibonacci retracement of the December to February uptrend; and a breach of this level opens up a full retracement to the 1522 December lows. Resistance is from last Wednesday’s high at 1682.

Ø Silver also closed higher today at 32.91, just below resistance at 33.15. Support is at 31.82, the 50% Fibonacci retracement of the rally from December through February. The Gold-Silver ratio is trading lower at 50.7. Resistance remains at the February high around 51.9.

Technical levels for 20^th Mar, 2012:

Metal	Support ($/oz)	Resistance ($/oz)
Gold	1,653.67	1,670.64
Silver	32.457	33.229

Economic Calendar:

Date	Economic Indicator	Country	Actual	Forecast	Previous	Effect & Remarks
20th Mar	Building Permits	USD	Pending at 8:30am	0.69	0.68	If Actual > Forecast = Good for currency. Annualized number of new residential building permits issued during the previous month.
19th Mar	Current Account	EUR	4.5	3.3	2.0	As Actual > Forecast = Good for currency. Difference in value between imported and exported goods, services, income flows, and unilateral transfers during the previous month has Increased.

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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