Market Commentary

Ø A weaker dollar overnight saw gold open higher at 1651.25/1652.25. Disappointing jobs data was offset by better than expected housing data and investors were once again optimistic. After an initial dip to its intraday low of 1648.50/1649.50, the metal moved higher with more willingness to put on risk. Gold eventually reached an intraday high of 1661/1662 mid day. The metal remained near its high end of the day’s range, alongside strong gains in equities, and closed the session at 1659.25/1660.25.

Ø Silver opened higher at 30.76/30.81. Recovering from a mid morning dip to 30.65/30.70, silver then gained momentum alongside strong gains in base metals and crude. Silver eventually reached an intraday high of 31.28/31.33 just before closing the day at 31.20/31.25.

Technical Commentary

Ø Gold closed higher today at 1659, moving towards the upper trendline in the bear channel it has been in since late February. We would need a clear break through this resistance level to bring in more buyers. Failure to clear the resistance level at 1663 will bring on a test of the long-term uptrend, currently at 1609.

Ø Silver closed higher at 31.20 but remains within the range of Monday’s steep sell-off. Resistance is at 31.71, Monday’s high. Support is at 30.00, around yesterday’s low. The Gold-Silver ratio is trading lower at 53.26, its first pause after 4 sessions higher.

Technical levels for 27th April, 2012:

Metal	Support ($/oz)	Resistance ($/oz)
Gold	1 ,646.51	1 ,667.44
Silver	30.671	31.523

Economic Calendar:

Date			Economic Indicator	Country	Actual		Forecast	Previous		Effect & Remarks
	27th April	Advance GDP q/q		US	Pending at 6:00pm	2.6%			3.0%	If Actual > Forecast = Good for currency. Annualized change in the inflation-adjusted value of all goods and services produced by the economy.
	26th April	Unemployment Claims		US	388K	374K			386K	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
	26th April	Pending Home Sales m/m		US	4.1%	1.2%			-0.5%	As Actual > Forecast = Good for currency. Change in the number of homes under contract to be sold but still awaiting the closing transaction, excluding new construction 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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