Market Commentary

Ø Gold opened almost unchanged at 1562.50/1563.50 with it gaining quickly after to an intraday high of 1564.25/1565.25. Slowing growth out of china and slower retail sales in the U.S. stifled gold’s gains. Further pressure from the inability of Greece to form a government pushed the metal to an intraday low of 1550/1551 midmorning. Renewed buying interest, alongside gains in equities, had gold recover a little to close the day at 1557.50/1558.50.

Ø Silver also opened flat at 28.37/28.42. A quick gain to its intraday high of 28.41/28.46 was erased as declines in base metals pressed the metal lower. Reaching an intraday low of 27.95/28.00 midmorning, silver found renewed buying interest to take it to its close at 28.06/28.11.

Technical Commentary

Ø Gold continued its steep descent today, closing at 1557. The next target is a full retracement to the December 2011 low of 1522 and there are no strong levels of support ahead of that level. Resistance is from the bottom of the bear channel that was previously acting as support, currently at 1580.

Ø Silver also closed down at 28.06. The next target is the bottom of the bear channel, currently at 27.18. Resistance is at 28.83, the 76.4% Fibonacci retracement of the December to February rally. The Gold-Silver ratio is trading higher at 55.68, which is right where the 76.4% Fibonacci resistance level is. The next target will be a full retracement to the 58.26 highs from December 2011.

Technical levels for 16^h May, 2012:

Metal	Support ($/oz)	Resistance ($/oz)
Gold	1 ,529.45	1 ,572.06
Silver	27.104	28.557

Economic Calendar:

Date			Economic Indicator	Country	Actual	Forecast	Previous		Effect & Remarks
	16th May	Building Permits		US	Pending at 6:00pm	0.73M		0.75M	If Actual > Forecast = Good for currency. Annualized number of new residential building permits issued during the previous month.
	16th May	FOMC Meeting Minutes		US	Pending at 11:30pm	NA		NA	It's a detailed record of the FOMC's most recent meeting, providing in-depth insights into the economic and financial conditions that influenced their vote on where to set interest rates
	15th May	Core CPI m/m		US	0.2%	0.2%		0.2%	As Actual = Forecast =No impact for currency. Not Change in the price of goods and services purchased by consumers, excluding food and energy
	15th May	Core Retail Sales m/m		US	0.1%	0.3%		0.8%	As Actual < Forecast =Not Good for currency. Change in the total value of sales at the retail level, excluding automobiles has Decreased.

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