Market Commentary

Ø Gold lost ground overnight as the dollar gained, opening the day lower at 1574.75/1575.75. It was a range bound day with investors remaining disappointed over the FED’s comments of yesterday. Gold reached an intraday low of 1567.25/1568.25, after promising housing data, but quickly recovered to eventually reach an intraday high of 1583/1584 midsession. Light profit taking took the metal to its close at 1570.75/1571.75.

Ø Lower base metals overnight saw silver open lower at 27.01/27.06. Reaching its intraday low of 26.88/26.93 after housing data, the metal recovered alongside steady gains in crude and then base metals. Silver reached its intraday high of 27.31/27.36 midsession where upon profit taking then slowly took the metal to its close at 27.11/27.16.

Technical Commentary

Ø Gold closed lower today at 1571, continuing its sideways trend. The range in gold is converging and is currently defined by 1554 support and 1613 resistance. While a bearish trend has been in force since late February, trend momentum is weak (Directional Movement Index ADX is at 17).

Ø Silver also closed lower at 27.16 and the trend in silver is stronger than that in gold, with an ADX at 22. Downtrend resistance is at 27.68 and support remains in the low 26.00 area. The Gold-Silver ratio is trading close to unchanged at 57.99, with support from the uptrend at 57.72.

Technical levels for 19^th July, 2012:

Metal	Support ($/oz)	Resistance ($/oz)
Gold	1,563.48	1,597.79
Silver	26.879	27.509

Economic Calendar:

Date		Economic Indicator	Country	Actual	Forecast	Previous		Effect & Remarks
19th July	Unemployment Claims		US	Pending at 6:00pm	367K		350K	If Actual < Forecast = Good for currency. The number of individuals who filed for unemployment insurance for the first time during the past week.
19th July	Existing Home Sales		US	Pending at 7:30pm	4.64M		4.55M	If Actual > Forecast = Good for currency. Annualized number of residential buildings that were sold during the previous month, excluding new construction.
18th July	Building Permits		US	0.76M	0.77M		0.78M	As Actual < Forecast =Not Good for currency. Annualized number of new residential building permits issued during the previous month has Decreased.
18th July	Fed Chairman Bernanke Testifies		US	NA	NA		NA	Federal Reserve Chairman Ben Bernanke will return to Capitol Hill on Wednesday, one day after sketching a bleak picture of the U.S. economy and warning it will darken further if Congress doesn't reach agreement soon to avert a budget crisis. Bernanke is giving his twice-a-year report to Congress on the state of the economy. He will testify to the House Financial Services Committee.

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 @ 27.16 / 26.98 , Stop at 26.76 with 27.54 & 28.04 as next targets.
The downside breakout of 26.76 will call for 26.46 & 26.11

GOLD‏ (Spot) intraday:

BUY @ 1570 / 1565 , Stop at 1553 with 1581 & 1597 as next target.


The downside breakout of 1553 will open the way to 1548 & 1631.

SILVER‏ (Spot) intraday:

SELL @ 27.03 / 27.12 , Stop at 27.28 with 26.76 & 26.61 as next targets.
The upside breakout of 27.28 will call for 27.54 & 28.04

GOLD‏ (Spot) intraday:

SELL @ 1574 / 1580 , Stop at 1583 with 1565 & 1558 as next target.
The upside breakout of 1583 will open the way to 1597 & 1610.

PRECIOUS METALS RECAP 7/11/2012

August Gold closed down 4.2 at 1575.6. This was 10.1 up from the low and 7.8 off the high.

July Silver finished up 0.144 at 26.995, 0.165 off the high and 0.145 up from the low.
Gold prices tried to hold up throughout the trading session but prices were clearly undermined as a result of the FOMC meeting minutes release. Apparently some members of the Fed were concerned that ongoing bond buying could damage the US Treasury market and for some that served to delay the prospect of any additional near term easing. With a recovery in the Dollar also seen today the gold bulls were presented with yet another outside market negative. With the August gold contract falling back to the lowest level since June 29th, some bulls were fearful of near term technical stop loss selling.

The silver market at times today showed promise before but ultimately the market gave back a large portion of its gains. However, given the action in gold and grain prices today, seeing silver mostly hold in positive ground was relatively impressive. However, silver had to be partially defeated by the net shake from the FOMC meeting minutes release, the reversal in the US equity markets and also because of the recovery in the US Dollar. All things considered the bull camp in silver had to be happy

COMEX SILVER (JUL) 07/12/2012: The next downside target is 2669.0. The next area of resistance is around 2710.0 and 2726.0, while 1st support hits today at 2686.0 and below there at 2669.0.

COMEX GOLD (AUG) 07/12/2012: The next downside objective is 1557.8. The next area of resistance is around 1584.0 and 1592.3, while 1st support hits today at 1567.3 and below there at 1557.6.

daily technical overview gold&silver

AUG GOLD

Resist: 1584.50, 1599.50-1602.00*
Supprt: 1553.30, 1547.90-, 1530.20+/-
Comment: Tuesday’s rejection from over 1599.50 and break into an outside bear day alerts for a trend shift to the downside that will drive declines to attack under 1550.20-. A close below 1547.90- calls for selloffs to attack 1530.20+/- weekly support and attempt a larger downside breakout. Any corrections trapped within Tuesday’s range will stay setup for selloffs. A close over 1602.00* is needed to flip the bias of congestion back to the upside.

SEP SILVER

Resist: 27.44-27.56, 27.98, 28.45*
Supprt: 26.59, 26.15-, 25.25
Comment: The market suggests a negative turnover and should drive selloffs to attack for a breakout under the recent 26.15 low. A close under 26.15 will open up a likely selling wave to 25.25. Trade may try to hang in basing / bottoming trade by creeping back into the selloffs of late last week, but a close over key 28.45* resistance is needed to secure a short term upturn and launch a move into the 29.19-29.98 range.

PRECIOUS METALS RECAP 7/11/2012

August Gold closed down 4.2 at 1575.6. This was 10.1 up from the low and 7.8 off the high.

July Silver finished up 0.144 at 26.995, 0.165 off the high and 0.145 up from the low.
Gold prices tried to hold up throughout the trading session but prices were clearly undermined as a result of the FOMC meeting minutes release. Apparently some members of the Fed were concerned that ongoing bond buying could damage the US Treasury market and for some that served to delay the prospect of any additional near term easing. With a recovery in the Dollar also seen today the gold bulls were presented with yet another outside market negative. With the August gold contract falling back to the lowest level since June 29th, some bulls were fearful of near term technical stop loss selling.

The silver market at times today showed promise before but ultimately the market gave back a large portion of its gains. However, given the action in gold and grain prices today, seeing silver mostly hold in positive ground was relatively impressive. However, silver had to be partially defeated by the net shake from the FOMC meeting minutes release, the reversal in the US equity markets and also because of the recovery in the US Dollar. All things considered the bull camp in silver had to be happy with today's action.


COMEX SILVER (JUL) 07/12/2012: The next downside target is 2669.0. The next area of resistance is around 2710.0 and 2726.0, while 1st support hits today at 2682.0 and below there at 2669.0.

COMEX GOLD (AUG) 07/12/2012: The next downside objective is 1557.8. The next area of resistance is around 1584.0 and 1592.3, while 1st support hits today at 1567.3 and below there at 1557.6.

Market Commentary

 Gold opened higher at 1595/1596 over optimism of Spanish Banks easy access to bailout funds coupled with good manufacturing data out of Italy and the U.K. The metal reached its intraday high of 1601.50/1602.50 soon after. Unable to find support here, profit taking alongside declines in equities began to take the metal lower. Gold reached its intraday low of 1578.50/1579.50 shortly before closing the session at 1579.50/1580.50.

Ø China’s lower import numbers for copper saw crude and other base metals lower overnight with silver opening slightly lower at 27.41/27.46. Gaining a little to its intraday high of 27.54/27.59 shortly after, profit taking then took the metal lower as base metals and crude further declined. Silver reached its intraday low of 26.87/26.92 shortly before ending the session at 26.91/26.96.

Technical Commentary

Ø Gold closed lower today at 1579. The downtrend from the March highs remains intact with trendline resistance at 1619. Support is in the 1548 to 1551 area, the lows from late June.

Ø Silver also traded lower, closing at 26.91 and making further progress towards a test of the 26.00 support level. There is trendline resistance from the downtrend at 28.16. The Gold-Silver ratio is trading higher at 58.43 with strong uptrend support at 57.12.

Technical levels for 11^th July, 2012:

Metal	Support ($/oz)	Resistance ($/oz)
Gold	1,556.01	1,589.43
Silver	26.575	27.305

Economic Calendar:

Date		Economic Indicator	Country	Actual	Forecast	Previous		Effect & Remarks
11th July	Trade Balance		US	Pending at 6:00pm	-48.5B		-50.1B	If Actual > Forecast = Good for currency. Difference in value between imported and exported goods and services during the reported month.
11th July	FOMC Meeting Minutes		US	Pending at 11:30pm	NA		NA	It's a detailed record of the FOMC's most recent meeting, providing in-depth insights into the economic and financial conditions that influenced their vote on where to set interest rates
10th July	French Industrial Production m/m		EU	-1.9%	-0.9%		1.5%	As Actual < Forecast =Not Good for currency. Change in the total inflation-adjusted value of output produced by manufacturers, mines, and utilities have Decreased.
10th July	Italian Industrial Production m/m		EU	0.8%	-0.3%		-1.9%	As Actual > Forecast = Good for currency. Change in the total inflation-adjusted value of output produced by manufacturers, mines, and utilities have 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.

Gold Spot

Gold Spot

STRATEGY REVISED BUY AT 1612.00 FOR 1662.80 STOP AT (1585.00) M. A. 9D 1588.57 18D 1599.22 30D 1594.69 9 DAY RSI 58.35 (60.30) MAJOR HIGH 1920.30 6Sep11 MAJOR LOW 251.70 25Aug99 4 Jul HI 1619.60 LO 1613.00 CL 1615.00 MAJOR TREND RESISTANCE 1671.20 Strong (1 May high) 1662.80 Fair (2 May high) 1653.25 Fair (3 May high) 1642.40 Strong (7 May/6 Jun highs, 1642.4/40.5) 1633.20 Strong (15 Jun high) 1618.50 (Update Price) 1594.60 Fair (3 Jul low) (1585.00) Fair (2 Jul low - 1586.85) 1567.30 Fair (29 Jun i-day low) 1550.55 Strong (29 Jun low) SUPPORT 1547.25 Strong (28 Jun low)

UPDATED LDN 5 Jul 08.22GMT TEL 020 7017 5463 Gold Spot Rebounded from last week's 1547.25 low, marking a higher base. Scope for a re-test of the 1633.20/1640.50 area, over which is required to confirm a 2-month base and trigger an extension higher. Under 1586.85 delays.