Market Commentary

Ø Gold opened higher at 1645/1646 with declining treasuries as investors returned to the risk trade. The metal was in the doldrums today, trading within a tight range that hasn’t been seen for awhile. Gold reached an intraday low of 1638/1639 early morning and then its intraday high of 1646/1647 just after the fix. The metal finished the week at 1641.75/1642.75 in quiet trading.

Ø Silver opened almost unchanged at 31.78/31.83 and saw very tight range trading for the session. Underperforming against strong gains in base metals and crude, silver reached an intraday high of 31.83/31.88 early morning and its intraday low of 31.55/31.60 mid day. The metal ended the week at 31.66/31.71.

Technical Commentary

Ø Gold closed the week lower at 1642. The long term uptrend off the 2008 low comes in around 1600. There is support at 1612 from the April low and we would expect a breach of that low to bring in more sellers. Resistance is around recent highs of 1716. Gold remains in a short-term bear channel and we would expect a test of support from the long-term uptrend.

Ø Silver closed the week slightly higher at 31.71. Silver has flatlined since April 4th and is showing no signs of life. We are neutral in silver so long as it remains above 31.00, which has been a strong level of support.However, should we breach 31.00 to the downside, more sellers are likely to come in and it would open up the possibility of a full retracement to 26. The Gold-Silver ratio is trading at 51.78, testing its uptrend which currently sits at 51.62. A breach of 51.50 would likely bring in more sellers.

Technical levels for 23th April, 2012:

Metal	Support ($/oz)	Resistance ($/oz)
Gold	1,634.93	1,653.05
Silver	31.400	31.980

Economic Calendar:

Date			Economic Indicator	Country	Actual		Forecast		Previous	Effect & Remarks
	23th April	French Flash Manufacturing PMI		EUR	Pending at 12:30pm	47.3		46.7		If Actual > Forecast = Good for currency. Level of a diffusion index based on surveyed purchasing managers in the manufacturing industry.
	23th April	German Flash Manufacturing PMI		EUR	Pending at 1:00pm	49.0		48.4		If Actual > Forecast = Good for currency. Level of a diffusion index based on surveyed purchasing managers in the manufacturing industry.
	20th April	German Ifo Business Climate		USD	109.9	109.6		109.8		As Actual > Forecast = Good for currency. Level of a composite index based on surveyed manufacturers, builders, wholesalers, and retailers 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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