Market Commentary

Ø Gold opened lower at 1580/1581, over gains in the dollar overnight and slipped to its intraday low of 1575.50/1576.50 quickly after. Reversing its losses as equities gained after positive housing data, gold reached its intraday high of 1590.25/1591.25 midmorning. Unable to hold as the EUR declined, gold gave up its gains and closed the day at 1576.50/1577.50.

Ø Suffering the effects of lower base metals and crude overnight, silver opened lower at 28.19/28.24 and quickly dipped to its intraday low of 28.11/28.16 soon after. A turn around in base metals, after housing data, brought back silver buying interest and the metal eventually reached an intraday high of 28.78/28.83 midmorning. As with other commodities, silver gave up its gains to close the day at 28.17/28.22.

Technical Commentary

Ø Gold closed lower today at 1576, around the bottom of our bear channel which comes in at 1574. Resistance is at 1599, close to yesterday’s high and also the 50% retracement of the April to May downtrend. Support is at 1526, the recent low.

Ø Silver closed slightly lower at 28.22, remaining in the middle of its well-entrenched bear channel defined by 26.67 supports and 29.74 resistance. Key support is at the recent low of 26.79 and resistance is at the recent high 28.91. The Gold-Silver ratio is trading lower at 55.65, but remains in a solid uptrend targeting 58.26.

Technical levels for 23^rd May, 2012:

Metal	Support ($/oz)	Resistance ($/oz)
Gold	1 ,550.44	1 ,591.25
Silver	27.451	28.723

Economic Calendar:

Date			Economic Indicator	Country	Actual	Forecast	Previous		Effect & Remarks
	23rd May	New Home Sales		US	Pending at 7:30pm	335K		328K	If Actual > Forecast = Good for currency. Annualized number of new single-family homes that were sold during the previous month.
	22th May	Existing Home Sales		US	4.62M	4.62M		4.48M	As Actual = Forecast =No impact for currency. Annualized number of residential buildings that were sold during the previous month, excluding new construction.
	22th May	FOMC Member Lockhart Speaks		US	NA	NA		NA	Factory bookings for long-lasting goods rose 0.3 percent last month after falling 3.9 percent in March, according to the median forecasts of 61 economists surveyed by Bloomberg News before a May 24 Commerce Department report.

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