Market Commentary

Ø Weakness in the overnight markets of all assets saw gold open lower at 1561/1562 as investors continue to look to the dollar for safety. The metal managed a small bounce to its intraday high of 1564.25/1565.25 but was unsustainable due to the strength of the dollar. Beginning to slide lower as equities declined, the metal eventually reached an intraday low of 1533.25/1534.25 midday. After the elimination of the insecure long positions, renewed buying interest then took gold to its close at 1548/1549

Ø Silver opened very weak at 27.67/27.72. Like gold, silver had its moment higher, reaching its intraday high of 27.88/27.93 early morning. Silver fell alongside the drop in commodities to its intraday low of 27.10/27.15 midmorning. A late afternoon rally brought the metal to its close at 27.53/27.58.

Technical Commentary

Ø Gold closed down sharply again today at 1548, closing back under the bear channel support line. This should now provide resistance at 1572, and gold is free to target its previous low from December of 1522. A new low below 1522 will open up 1478, the July 2011 low.

Ø Silver also closed lower at 27.58, trading within its bear channel currently defined by 26.57 supports and 29.64 resistances. A close below the last low of 26.79 will bring in more sellers. The gold-silver ratio is trading higher at 56.23; the next big target is a full retracement to the 58.26 highs.

Technical levels for 24^th May, 2012:

Metal	Support ($/oz)	Resistance ($/oz)
Gold	1 ,531.76	1 ,592.48
Silver	27.001	28.666

Economic Calendar:

Date			Economic Indicator	Country	Actual	Forecast	Previous		Effect & Remarks
	24th May	Unemployment Claims		US	Pending at 6:00pm	372K		370K	If Actual < Forecast = Good for currency. The number of individuals who filed for unemployment insurance for the first time during the past week.
	24th May	FOMC Member Dudley Speaks		US	Pending at 8:00pm	NA		NA	Federal Reserve FOMC members vote on where to set the nation's key interest rates and their public engagements are often used to drop subtle clues regarding future monetary policy
	23rd May	New Home Sales		US	343K	335K		328K	As Actual < Forecast = Good for currency. Annualized number of new single-family homes that were sold during the previous month 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.