Market Commentary

Ø Global weakness in equities overnight saw gold open lower at 1671.50/1672.50. Buying of the metal after positive manufacturing data took gold to an intraday high of 1677.50/1678.50 mid morning. Unable to hold onto the rally as the dollar gained, profit taking eventually took gold to its intraday low of 1654/1655 late in the session. Gold ended the day shortly after at 1657.50/1658.50.

Ø Silver opened lower at 32.40/32.45 with it reaching an intraday high of 32.48/32.53 mid day. Profit taking as base metals and crude made strong declines took silver to a late session low of 31.76/31.81. The metal ended the day soon after at 31.84/31.89.

Technical Commentary

Ø Gold is closing lower at 1659. The metal has fallen from yesterday’s 1696 high and looks poised to move back to last week’s low of 1629.The 1656 level represents the 50% of our three month 1523 to 1790 range. The lower major highs registered the past three weeks of 1790, 1716 and now 1696 are warning of another leg to the down side. We see 1608 as a critical pivot. This level represents the bullish trend support from the 3 year up move. Only a move back above 1696 will bring buyers back into market.

Ø Silver is weak today closing at current 31.99. Silver is also having a rough month with lower highs seen from 37.46 to 34.39 and yesterdays 33.18. We would expect fresh liquidation selling of Silver on a break of last week’s low of 31.13. The Gold Silver ratio has moved higher today to 51.86. Recent highs are seen at 52.06 with support near 50.54. It appears the risk for this ratio is a jump to 52.86 which is the 50% of our three month range.

Technical levels for 29^th Mar, 2012:

Metal	Support ($/oz)	Resistance ($/oz)
Gold	1,644.75	1,686.67
Silver	31.494	33.877

Economic Calendar:

Date	Economic Indicator	Country	Actual	Forecast	Previous	Effect & Remarks
29th Mar	Unemployment Claims	USD	Pending at 8:30am	351	348	If Actual < Forecast = Good for currency. The number of individuals who filed for unemployment insurance for the first time during the past week.
28th Mar	Core Durable Goods Orders m/m	USD	1.6%	1.6%	-3.0%	As Actual = Forecast = Not impact for currency. Change in the total value of new purchase orders placed with manufacturers for durable goods, excluding transportation items.

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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