PRECIOUS METALS RECAP 3/30/2012

April Gold closed up 15.6 at 1667.8. This was 8.8 up from the low and 2.2 off the high.

May Silver finished up 0.492 at 32.484, 0.141 off the high and 0.254 up from the low.

The gold market benefited from the risk on track on Friday morning, but the trade at times was skeptical of the positive economic track being factored in the equity markets. In retrospect, the US economic track presented a mix picture today but the focus of the trade in physical commodity markets early next week might be heavily determined by the Chinese PMI readings that will be released Sunday night. Gold saw some evidence of rising physical production today but the main focus of the trade seemed to remain on the demand side of the equation. However, the gold market probably managed to draft some outside market support from currency market action and perhaps gold also saw some minor lift from the rather sharp gains in grain prices.

The silver market at times outperformed the gold market and that in turn prompted a number of analysts to suggest that silver was coming back into investment favor relative to gold. Silver was probably lifted as a result of positive action in US equities and perhaps to a lesser degree by supportive currency market action. Despite periodic strength in silver prices today the market wasn't able to rise much above the middle of this week's trading range.

COMEX SILVER (MAY) 03/31/2012:

The next upside objective is 3275.0. The next area of resistance is around 3244.0 and 3275.0, while 1st support hits today at 3205.0 and below there at 3189.0.

COMEX GOLD (APR) 03/31/2012:

The next upside target is 1677.0. The next area of resistance is around 1673.0 and 1677.0, while 1st support hits today at 1662.5 and below there at 1655.5.

JUN GOLD

Resist: 1674.50-1679.50, 1690.40*+
Supprt: 1653.90*-, 1642.90, 1628.50*
Comment: The rejection over 1690.40* is prompting a drop back against key 1653.90* support. A close under 1653.90* will rekindle bear trend forces for another drop against 1628.50* weekly support. Stable trade off 1653.90* for a few days should foster creeping rallies, but look for a close over 1690.40* or pop over last Tuesday’s high to rekindle retracements to the 1729.50 swing target.

MAY SILVER

Resist: 32.55, 32.95+, 33.55*

Supprt: 31.79, 31.45
Comment: Overall the market is bearish. Last week’s slip under 32.00- suggests a rejection of near term orrections. Suspect attempts to extend secondary selloffs and use a drop under 31.45 to rekindle the bear wave and release a wash to 30.60* support. Be alert for a bounce off 30.60*+/- on the first test. A close over 33.55* is necessary to mark a bottoming / bullish turnaround.

Market Commentary

Ø Global rise in equities overnight after Europe’s rescue limit was increased saw gold open higher at 1667/1668. Profit taking ahead of the P.M. fix took the metal to its intraday low of 1659.50/1660.50 mid morning. Renewed buying interest as equities advanced took gold to a late session high of 1670.75/1671.75. The metal ended the week soon after at 1669.75/1670.75.

Ø Stronger base metals and crude overnight had silver open the day higher at 32.46/32.51. Silver continued to advance inline with gains in commodities, eventually reaching an intraday high of 32.61/32.66 mid day. Profit taking ahead of confidence data took the metal to an intraday low of 32.22/32.27 mid session. Silver bounced back to end the week on its open at 32.46/32.51.

Technical Commentary

Ø Gold has closed the week slightly higher at 1669, still respecting the long-term uptrend. Support from the uptrend is currently at 1590. Closer by, there is support at last week’s low of 1628 and resistance from the weekly high of March 16th at 1717. While the long-term uptrend is intact, gold has been trading sideways since mid-March after its steep correction off the 1790 highs. With the failure today to complete the rising three methods pattern, we remain neutral.

Ø Silver closed slightly higher on the week at 32.46, still well above its long-term uptrend (currently just above $25). Support is at last week’s low of 31.11 and resistance at 34.00, the 38.2% retracement of the long-term uptrend. Silver has been trading sideways since March 14th with support at 31.81 and resistance at 33.15 (the 50% and 38.2% Fibonacci retracement levels of the Dec to Feb rally, respectively). We remain neutral within that range. The uptrend in the Gold-Silver ratio has lost momentum, trading sideways on a 51-handle, currently at 51.43.

Technical levels for 2^nd April, 2012:

Metal	Support ($/oz)	Resistance ($/oz)
Gold	1,662.24	1,673.69
Silver	32.122	32.772

Economic Calendar:

Date	Economic Indicator	Country	Actual	Forecast	Previous	Effect & Remarks
2nd April	ISM Manufacturing PMI	USD	Pending at 10:00am	53.3	52.4	If Actual > Forecast = Good for currency. Level of a diffusion index based on surveyed purchasing managers in the manufacturing industry.
30th Mar	Chicago PMI	USD	62.2	63.2	64.0	As Actual < Forecast =Not Good for currency. Level of a diffusion index based on surveyed purchasing managers in the Chicago area has Decreased.
30th Mar	Revised UoM Consumer Sentiment	USD	76.2	74.9	74.3	As Actual > Forecast = Good for currency. Level of a composite index based on surveyed consumers has 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.

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