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: -

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