Market Commentary

Ø Overnight gains in the dollar saw gold open lower at 1580.75/1581.75, also its intraday high. Fund selling as the dollar continued to gain coupled with declines in equities took the metal to its intraday low of 1567.50/1568.50 midsession. Midday renewed buying interest saw gold recover small, closing the day at 1573.75/1574.75.

Ø Declines in base metals overnight saw silver open lower at 27.24/27.29. Disappointing consumer confidence data helped to pare silver’s early morning gain to an intraday high of 27.34/27.39. The metal slid lower alongside declines in base metals and crude to eventually reach an intraday low of 26.79/26.84 midsession. Recovering at the end of the day, silver closed the session at 27.10/27.15.

Technical Commentary

Ø Gold closed at 1573 today, erasing much of yesterday’s gains. Resistance is at last Thursday’s high at 1607, followed by the downtrend which comes in around 1627. Support is at Friday’s low of 1558. Price action is weak and we are likely to have a retest of the 1526 low.

Ø Silver closed lower at 27.15. After a long sideways consolidation, silver has resumed its downtrend. Support is in the low 26’s (26.07-26.16) where we have made 2 bottoms in September and December. Resistance is at Thursday’s high at 28.16. The Gold-Silver ratio is trading higher at 57.96 and continues to have strong support from its well-established uptrend, currently at 56.12.

Technical levels for 27^th June, 2012:

Metal	Support ($/oz)	Resistance ($/oz)
Gold	1,565.05	1,584.99
Silver	26.831	27.691

Economic Calendar:

Date		Economic Indicator	Country	Actual	Forecast	Previous		Effect & Remarks
27th Jun	Pending Home Sales m/m		US	Pending at 7:30pm	1.2%		-5.5%	If 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.
27th Jun	Core Durable Goods Orders m/m		US	Pending at 6:00pm	0.9%		-0.9%	If Actual > Forecast = Good for currency. Change in the total value of new purchase orders placed with manufacturers for durable goods, excluding transportation items.
26th Jun	CB Consumer Confidence		US	62.0	63.8		64.9	As Actual < Forecast =Not Good for currency. Level of a composite index based on surveyed households has Decreased.

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.

Market Commentary

Ø Investors continued optimism over Greece had gold open higher at 1620.25/1621.25. Gold quickly gained to an intraday high of 1627.75/1628.75 amid continued speculation of added stimulus after surprising job loss data. Heavy fund selling, however, just ahead of equities opening, quickly took the metal to its intraday low of 1609/1610. Buying interest, renewed by gains in equities, saw the metal recover, ending the day at 1618.75/1619.75.

Ø Silver opened at little lower at 28.86/28.91 and quickly gained to its intraday high of 28.99/29.04 after the jobs data. The metal experienced the same bout of selling as gold and quickly reached an intraday low of 28.18/28.23. Although base metals and crude made solid gains, silver lacked the strength in its recovery as had gold and eventually ended the day at 28.44/28.49.

Technical Commentary

Ø Gold closed slightly higher today at 1619. The technical picture is unchanged – we are currently in a consolidation pattern with support at 1556 and resistance at 1641. The longer term trend has been bearish since the big selloff on February 29th.

Ø Silver closed lower at 28.49, trading sideways within a range of 28 to 29. A break of key resistance at 29.90 will bring in more buyers, while a break to the downside through Friday’s low just under 28 will bring in more sellers. From a short-term perspective, we are neutral, though the longer terms bear trend remains intact. The Gold-Silver ratio had a big up-day and is currently trading at 56.84. It remains in a strong uptrend with support from the trendline at 55.32.

Technical levels for 15^th June, 2012:

Metal	Support ($/oz)	Resistance ($/oz)
Gold	1,610.56	1,632.24
Silver	28.062	29.272

Economic Calendar:

Date		Economic Indicator	Country	Actual	Forecast	Previous		Effect & Remarks
15th Jun	Prelim UoM Consumer Sentiment		US	Pending At 7:25pm	77.5		79.3	If Actual > Forecast = Good for currency. Level of a composite index based on surveyed consumers.
14th Jun	Core CPI m/m		US	0.2%	0.2%		0.2%	As Actual = Forecast =No impact for currency. No Change in the price of goods and services purchased by consumers, excluding food and energy.
14th Jun	Unemployment Claims		US	386K	377K		377K	As Actual > Forecast =Not Good for currency. Unemployment Claims 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.

SILVER‏ (Spot) intraday:

BUY @ 28.90 / 28.70 , Stop at 28.58 with 29.14 & 29.62 as next targets.

The downside breakout of 28.58 will call for 28.32 & 27.97

GOLD‏ (Spot) intraday:

BUY @ 1618 / 1615 , Stop at 1605 with 1628 & 1639 as next target.


The downside breakout of 1605 will open the way to 1589 & 1582.

Market Commentary

Ø Gold opened a little lower at 1610.75/1611.75 and made a quick dip to an intraday low of 1609.25/1610.25. The metal raced higher after poor economic data spurred stronger thoughts of QE3. Gold eventually reached an intraday high of 1624.75/1625.75 early morning before profit taking halted the metal’s climb, taking it to a close of 1618.50/1619.50.

Ø Silver opened lower at 28.76/28.81 alongside lower crude overnight. After a quick dip to its intraday low of 28.73/28.78 after the open, silver gained quickly alongside gold to reach an intraday high of 29.11/29.16 early morning. Range bound for the remainder of the session, silver closed the day on light profit taking at 28.95/29.00.

Technical Commentary

Ø Gold closed slightly higher today at 1618 but continues to trade within a consolidation pattern. Support is at Friday’s low of 1556 and resistance at the June high of 1641. We will need to see a breakout on either side to establish direction; though the general bearish trend for gold remains in place.

Ø Silver also continues to trade sideways, forming a doji in the candlestick charts. The close was 28.95. The low 29’s have provided resistance in the past 3 sessions and support is at Friday’s low of 27.96. Key resistance is at 29.90, June’s high. The Gold-Silver ratio is trading higher at 55.90.

Technical levels for 14^th June, 2012:

Metal	Support ($/oz)	Resistance ($/oz)
Gold	1,609.01	1,629.81
Silver	28.453	29.336

Economic Calendar:

Date		Economic Indicator	Country	Actual	Forecast	Previous		Effect & Remarks
14th Jun	Core CPI m/m		US	Pending At 6:00pm	0.2%		0.2%	If Actual > Forecast = Good for currency. Change in the price of goods and services purchased by consumers, excluding food and energy.
14th Jun	Unemployment Claims		US	Pending At 6:00pm	377K		377K	If Actual < Forecast = Good for currency. The number of individuals who filed for unemployment insurance for the first time during the past week.
13th Jun	Core Retail Sales m/m		US	-0.4%	0.1%		0.1%	As Actual < Forecast =Not Good for currency. Change in the total value of sales at the retail level, excluding automobiles has Decreased.
13th Jun	PPI m/m		US	-1.0%	-0.6%		-0.2%	As Actual < Forecast =Not Good for currency. Change in the price of finished goods and services sold by producers have Decreased.

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.