Market Commentary

Ø Gold opened lower at 1632/1633, as the dollar gained ahead of the start of the New York session. The metal touched its intraday low of 1631.10/1632.10 quickly after and remained near there after poor jobs data. Strong buying ahead of the fix took it to an intraday high of 1653.50/1654.50 but profit taking after poor factory data and declines in equities saw gold drift lower for the remainder of the session, eventually closing the day at 1640/1641.

Ø Declines in base metals and crude saw silver open lower at 31.42/31.47 with the metal reaching its intraday low of 31.32/31.37 soon after. As commodities temporarily reversed their declines with an advance of the morning. Quiet trading for the remainder of the day took silver to its close at 31.77/31.82

Technical Commentary

Ø Gold is marginally lower today at 1640. This is the 5th consecutive down day off 1680. We see our 3.5 year bull trend support line in at 1625 this week. Overall, the price action since February high of 1790 has been quite weak. We have seen repeated lower tops and lower lows suggesting we are in a bearish cycle. Lower highs of 1725, 1716, 1696 and then this week’s 1680 is a concerning development. Price level to the downside is April low, 1613. We would expect liquidation selling of Gold below 1600. We do not see fresh buying emerge until we can reclaim the 1700 level.

Ø Silver is slightly higher today at 31.78. The metal has been moving sideways between $31.00 and $32.50 for the month of April. We are either building a base orconsolidating before the next leg lower. The Gold Silver ratio is lower today for the 4th day in a row at 51.63. Channel support lies at 51.38 followed by April low of 50.45. Topside resistance lies at 52.59.

Technical levels for 20th April, 2012:

Metal	Support ($/oz)	Resistance ($/oz)
Gold	1,629.12	1,652.82
Silver	31.350	32.153

Economic Calendar:

Date			Economic Indicator	Country	Actual		Forecast		Previous	Effect & Remarks
	20th April	German Ifo Business Climate		USD	Pending at 1:30pm	109.6		109.8		If Actual > Forecast = Good for currency. Level of a composite index based on surveyed manufacturers, builders, wholesalers, and retailers.
	19th April	Unemployment Claims		USD	386K	370K		380K		As Actual > Forecast = Not Good for currency. The number of individuals who filed for unemployment insurance for the first time during the past week has Increased.
	19TH April	Existing Home Sales		USD	4.48M	4.62M		4.59M		As Actual < Forecast =Not Good for currency. Annualized number of residential buildings that were sold during the previous month, 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.

Ø