Market Commentary

Ø Gold consolidated overnight, opening the session unchanged at 1657.00/1658.00, before climbing to an intraday high of 1662.50/1663.50. The metal later retreated to a low of 1655.00/1656.00 as the dollar recovered slightly and equities pulled back. Quiet trade in the afternoon took us to a close of 1658.50/1659.50.

Ø Silver traded marginally lower overnight, commencing at 31.58/31.63, before climbing to an intraday high of 31.81/31.86. Selling interest as the dollar recovered took the metal to an intraday low of -2-10 1 2 31.36/31.41.The commodity improved slightly and concluded the session at 31.51/31.56.

Technical Commentary

Ø Gold closed slightly lower today after yesterday’s strong up-move, closing at 1658. The ability for gold to hold the 1656 level (the 50% retracement of the December to February up-move), and to close above the short-term bearish trend channel, is encouraging for bulls. Gold also clearly rejected the move down below the 61.8% Fibonacci retracement next resistance is at 1683, the high from April 2nd. A new high above this level would establish a higher high and thus negate the short-term down channel.

Ø Silver closed lower at 31.51 and has been trading sideways for the past 5 sessions. The small real bodies (i.e., small range from open to close) show that the bulls and bears are wrestling for control. The short-term bearish trendline comes in around 32.20 and is providing resistance. Silver has had considerable support around the 31.00 level. The Gold-Silver ratio continues to drift higher at 52.60. There is support from the short-term uptrend around 50.90, and resistance at 52.97 which is the 50% retracement level of the down move from December to February.

Technical levels for 12th April, 2012:

Metal	Support ($/oz)	Resistance ($/oz)
Gold	1,652.36	1,663.46
Silver	31.280	31.925

Economic Calendar:

Date	Economic Indicator	Country	Actual	Forecast	Previous	Effect & Remarks
12th April	Trade Balance	USD	Pending at 6:00pm	-51.9B	-52.6B	If Actual > Forecast = Good for currency. Difference in value between imported and exported goods and services during the reported month.
12th April	Unemployment Claims	USD	Pending at 6:00pm	355K	357K	If Actual < Forecast = Good for currency. The number of individuals who filed for unemployment insurance for the first time during the past week.
11th April	Import Prices m/m	USD	1.3%	0.8%	0.4%	As Actual > Forecast = Good for currency. Change in the price of imported goods and services purchased domestically have Increased.
11th April	Crude Oil Inventories	USD	2.8M	2.1M	9.0M	As Actual > Forecast =No consistent effect - there are both inflationary and growth implications. Change in the number of barrels of crude oil held in inventory by commercial firms during the past week 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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