GENERAL MARKET CONDITIONS

Apart from liquidity factors, lower crude oil prices are negatively affecting gold and silver. China is an export dependent country, if US and European growth slows down the Chinese economy will also cool and there will be less demand for base metals which will increase global inventory of base metals and cause a reduction of speculative interest in the short term. Gold will be caught between being a safe haven hedge and a corollary to crude oil prices which will only increase volatility. The spectacular rise of gold in January will result in greater investment demand and greater physical demand at lower levels.

Monday, pit trading is closed while electronic trading is open. There will be position squaring and rebuilding for the extended weekend.

SILVER -- MARCH FUTURE -- INTRA DAY PIVOT $1552

Silver has to hold $1538 and $1512 or break $1628- $1638 for direction.

MCXARUN
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