Market Commentary

Ø Investors looked upon Mr. Bernanke’s pre-open comments in a positive view which was reflected in gold opening higher at 1677.50/1678.50.The metal dipped to its intraday low of 1676.50/1677.50 just after but the tone was set for a rise in assets. Amongst a declining dollar coupled with strong gains in equities, gold reached an intraday high of 1687.75/1688.75 mid day. The metal ended the session at 1685.50/1686.50.

Ø Silver was no exception to the pre-open gains in assets and opened higher at 32.70/32.75. Slipping to an intraday low of 32.55/32.60 as crude began to decline, the metal found renewed support alongside strongly rising base metals. Silver eventually reached an intraday high of 32.88/32.93 mid day with it closing the session at 32.75/32.80.

Technical Commentary

Ø Gold moved higher today, closing at 1685. The 200-day moving average at 1687 capped the move. There is support at 1656, the 50% retracement of the December to February up-trend. Key resistance is at the last interim top, 1717.

Ø Silver also closed higher today at 32.80. Support is at 31.11, the last interim low and resistance is at 33.15, the 38.2% Fibonacci retracement of the December to February up-trend. The Gold-Silver ratio is trading at 51.40.

Technical levels for 27^th Mar, 2012:

Metal	Support ($/oz)	Resistance ($/oz)
Gold	1,664.76	1,697.32
Silver	32.248	33.092

Economic Calendar:

Date	Economic Indicator	Country	Actual	Forecast	Previous	Effect & Remarks
27th Mar	CB Consumer Confidence	USD	Pending at 10:00am	70.3	70.8	If Actual > Forecast = Good for currency. Level of a composite index based on surveyed households.
26th Mar	Pending Home Sales m/m	USD	-0.5%	1.0%	2.0%	As Actual < Forecast =Not Good for currency. Change in the number of homes under contract to be sold but still waiting the closing transaction, excluding new construction 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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