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.