Market Commentary

Ø Retreating overnight, gold opened lower at 1589/1590 and dipped to an intraday low of 1588.25/1589.25 soon after. Investor speculation of more stimulus to come, brought bids back in to the market, chasing away the weak shorts and taking the metal to an intraday high of 1617/1618 midsession alongside strong gains in equities. Giving up a little in profit taking, gold quietly ended the day at 1612.50/1613.50.

Ø Silver opened on its intraday low of 28.47/28.52 on lower base metals and crude. Gaining alongside the jump in gold and rising crude, silver reached an intraday high of 29.07/29.12 midsession. Silver ended the day on light profit taking at 28.97/29.02.

Technical Commentary

Ø Gold is higher today at 1607. This is the 7th consecutive day of alternating between "Up" and "Down" days. From a price perspective, the 1559 support is key ahead of 1528. The 1640 is the topside trigger for a move higher. Fibonacci levels from our 3 month 1790 to 1528 down move are seen at 1628 the 38.2%, 1659 50% and 1690 the 61.8%.

Ø Silver is higher today at 28.98. The key levels in Silver lie at 27.99 and 29.89. The metal has not seen much of a bounce from the 37.46 to 26.87 three month down move. The 38.2% Fibo does not come in until 30.91. The Gold Silver ratio made a move lower today to 55.60 from previous close near 56.00. We believe that the ratio should take another run to 57.50 but will stop loss below 55.00. We are worried that the ratio is building a Head and Shoulders reversal pattern.

Technical levels for 13^th June, 2012:

Metal	Support ($/oz)	Resistance ($/oz)
Gold	1,593.87	1,624.77
Silver	28.453	29.355

Economic Calendar:

Date		Economic Indicator	Country	Actual	Forecast	Previous		Effect & Remarks
12th Jun	Core Retail Sales m/m		US	Pending At 6:00pm	0.1%		0.1%	If Actual > Forecast = Good for currency. Change in the total value of sales at the retail level, excluding automobiles.
12th Jun	PPI m/m		US	Pending At 6:00pm	-0.6%		-0.2%	If Actual > Forecast = Good for currency. Change in the price of finished goods and services sold by producers.
12th Jun	Federal Budget Balance		US	-124.6B	112.7B		59.1B	As Actual < Forecast =Not Good for currency. Difference in value between the federal government's income and spending during the previous month 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.