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.

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