Market Commentary

Ø Global rise in equities overnight after Europe’s rescue limit was increased saw gold open higher at 1667/1668. Profit taking ahead of the P.M. fix took the metal to its intraday low of 1659.50/1660.50 mid morning. Renewed buying interest as equities advanced took gold to a late session high of 1670.75/1671.75. The metal ended the week soon after at 1669.75/1670.75.

Ø Stronger base metals and crude overnight had silver open the day higher at 32.46/32.51. Silver continued to advance inline with gains in commodities, eventually reaching an intraday high of 32.61/32.66 mid day. Profit taking ahead of confidence data took the metal to an intraday low of 32.22/32.27 mid session. Silver bounced back to end the week on its open at 32.46/32.51.

Technical Commentary

Ø Gold has closed the week slightly higher at 1669, still respecting the long-term uptrend. Support from the uptrend is currently at 1590. Closer by, there is support at last week’s low of 1628 and resistance from the weekly high of March 16th at 1717. While the long-term uptrend is intact, gold has been trading sideways since mid-March after its steep correction off the 1790 highs. With the failure today to complete the rising three methods pattern, we remain neutral.

Ø Silver closed slightly higher on the week at 32.46, still well above its long-term uptrend (currently just above $25). Support is at last week’s low of 31.11 and resistance at 34.00, the 38.2% retracement of the long-term uptrend. Silver has been trading sideways since March 14th with support at 31.81 and resistance at 33.15 (the 50% and 38.2% Fibonacci retracement levels of the Dec to Feb rally, respectively). We remain neutral within that range. The uptrend in the Gold-Silver ratio has lost momentum, trading sideways on a 51-handle, currently at 51.43.

Technical levels for 2^nd April, 2012:

Metal	Support ($/oz)	Resistance ($/oz)
Gold	1,662.24	1,673.69
Silver	32.122	32.772

Economic Calendar:

Date	Economic Indicator	Country	Actual	Forecast	Previous	Effect & Remarks
2nd April	ISM Manufacturing PMI	USD	Pending at 10:00am	53.3	52.4	If Actual > Forecast = Good for currency. Level of a diffusion index based on surveyed purchasing managers in the manufacturing industry.
30th Mar	Chicago PMI	USD	62.2	63.2	64.0	As Actual < Forecast =Not Good for currency. Level of a diffusion index based on surveyed purchasing managers in the Chicago area has Decreased.
30th Mar	Revised UoM Consumer Sentiment	USD	76.2	74.9	74.3	As Actual > Forecast = Good for currency. Level of a composite index based on surveyed consumers 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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