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Russell Browne - russell.browne@scotiabank.com Trading Contacts Reuters MMCN or (212)225-6200 Stephen Abbriano-stephen.abbriano@scotiabank.com Robert Lockwood-robert.lockwood@scotiabank.com

Gold & Silver Marketwatch Daily Update

Wednesday, May 09, 2012

Market Commentary

1-Day Commodity Moves

Commodities down onwhich Japanese worries, silver opened Silver opened overall lower atbeing 28.65/28.70 was also its intraday low. The the daysaw significantly lower atthe 33.77/33.81, quickly reaching an intraday metal gains throughout session alongside base metals and to a low of 33.57/33.61. interest as andhigh base began to lesser extent crude.Buying Silver reached an crude intraday of metals 29.30/29.35 reverse their slide lower tookthesilver to anonintraday highnote of 34.80/34.84 midday. The metal finished session a positive closing at mid session. As with gold, another round of profit taking took the metal 29.23/29.28. to its close of 34.12/34.16. Technical Commentary Technical Commentary Gold continued its melt-down today, testing support in the 2 month bear A risk aversion rally in the USD put significant channel at 1585induced on an intraday basis, buthas closing just abovedownward there at pressure gold.level Thewas metal dropped rapidly through several layers of 1593. Theon1585 also our initial downside target on this move. with support onlysupport being found 100-day moving averageto Asupport, close below this critical level at willthe open up a full retracement of 1379. After today's test,isthis level has andlow. gold will now 1522. Topside resistance at 1612, the strengthened previous interim require a significant catalyst to break below here. Should downward pressure riskofis 28.83 that gold willintraday test down to Silver alsoemerge met ouragain initialtomorrow, downsidethe target on an basis, the closed psychologically important $1,350. but above there at 29.23. A close below 28.83 opens up a full retracement to 26.16. The rally in the Gold-Silver ratio shows signs of Silver also had a technically the chart slowing momentum; as it hasbearish failed today, holdhowever its intraday highscontinues of the past be more thanatgold's. 3todays. It is encouraging currently trading 54.44.Support for the metal lies at late February congestion of $32.15, followed by the 50-day moving average of $30.96. The MACD has turned bearish, but most other technical studies are still clinging to bullish signals. Tomorrow's trading pattern will be key. Confirmation of today's down move would open up the potential of more selling.

Gold

-0.9

Overnight strength in the dollar pushed gold opening atRecent Gold continued its recent slide, opening lowerlower, at 1584/1585. 1396.25/1397.25. Profit taking over worries took all news concerning Greece continued to weighabout downJapan on thequickly metal and the metal to an intraday low of As the selling frenzy assets in general. Gold saw an1381.10/1382.10. intraday low of 1577.75/1578.75 in early subsided, renewed buying interest brought gold back up to an intraday trading. The metal climbed back throughout the session, alongside the high of 1403.25/1404.25 midansession. find support at this EUR and equities reaching intradayUnable high ofto1595.50/1596.50 midday. level,closed the metal quietly to close the day at 1392.50/1393.50. Gold the eased day at back 1593.50/1594.50.

Silver

-0.6

Platinum

-0.8

Palladium

-1.1

Oil WTI fut

-0.6

Copper fut

-0.4

EUR

-0.4

S&P 500

-0.5 %

CRB

-0.1

-2

-1

0

5-Day Commodity Moves Gold

-3.8

Silver

-4.5

Platinum

-4.0

Palladium

-8.1

Oil WTI fut

-8.3

Copper fut

-3.1

EUR

-1.6

S&P 500

-3.3

CRB

-3.0 %

-11

-6

-1

4

9

1 Month Commodity Moves Gold Silver

-3.0 -7.3

Platinum

-7.2

Palladium

-4.5

Oil WTI fut

-5.9

Copper fut

-1.3

EUR

-1.2

S&P 500

-3.7

CRB %

-3.3

-8.0

-6.0

-4.0

-2.0

0.0

5/9/12 15:36 - Time above charts last updated - Source: Bloomberg Technical Levels, etc.Gold, Silver, Platinum & Palladium

Gold Open High Low Close / Last Mid* London Fix AM London Fix PM Handy Harman (Base) Gold / Silver Ratio Open Interest COMEX CBOT Total

1584.00/1585.00 1595.50/1596.50 1577.75/1578.75 1593.50/1594.50 1,585.50 1,582.50 1,582.50 55.01 Gold OI 417,798 1,531 419,329

Silver 28.65/28.70 29.30/29.35 28.65/28.70 29.23/29.28 28.77 NA 29.200 NA

Technical TechnicalLevels, Levels,etc. etc.

Platinum 1,510.50 1,512.75 1,490.75 1,499.25 1,505.00 1,499.00 1,499.00 NA Silver OI 113,549 655 114,204

Gold

Palladium 621.50 624.88 609.75 614.75 615.00 615.00 615.00 NA

Pivot Primary Support (Buy) Primary Resistance (Sell) HBOP LBOP Bollinger Band Upper Bollinger Band Mid Bollinger Band Lower Relative Strength 9 Day Relative Strength 14 Day

Silver 29.339 28.558 30.040 31.523 27.075 32.499 30.939 29.379 23 30

Platinum

Palladium

1,508 1,481 1,525 1,569 1,437 1,612 1,560 1,507 21 27

625.00 599.00 640.25 681.50 557.75 695.57 659.92 624.27 22 30

Close/last mid refers to the spot closing floor price in gold and silver, and spot’s last mid price as provided by Bloomberg in platinum & palladium spot All other data provided by Bloomberg. Actual market levels may have differed .

Gold and Silver Market Watch

Gold: 2-Year Close with Moving Averages

1,603.26 1,567.19 1,626.39 1,685.58 1,508.00 1,682.89 1,645.08 1,607.27 22 29

Wednesday, May 09, 2012

Gold: 2-Month Candlesticks


Gold: 2-Year Close with Moving Averages

Gold: 2-Month Candlesticks

1850

2000

$/oz

1800 1800

Spot

1750

100-Day 200-Day

1600

1700

400-Day

1650

1400

1600 1200

1550 1000

1500

800 Jun-10

Oct-10

Feb-11

Jun-11

Oct-11

Feb-12

1450 16-Mar

26-Mar

5-Apr

Silver: 2-Year Close with Moving Averages

Silver: 2-Month Candlesticks

50 $/oz 48 46 44 42 40 38 36 34 32 30 28 26 24 22 20 18 16 14 12 10 Jun-10

38.0

15-Apr

25-Apr

5-May

15-Apr

25-Apr

5-May

37.0

36.0 Spot

35.0

100-Day

34.0

200-Day

33.0

400-Day

32.0 31.0

30.0 29.0 28.0

27.0 26.0

Oct-10

Feb-11

Jun-11

Oct-11

25.0 16-Mar

Feb-12

26-Mar

5-Apr

Source: Bloomberg - which can differ slightly from market

Moving Averages

5 Day MA 10 Day MA 20 Day MA 30 Day MA 60 Day MA 100 Day MA 200 Day MA 400 Day MA

Markets

FX Majors

Gold 1,622.55 1,641.36 1,645.08 1,646.77 1,674.73 1,670.70 1,700.09 1,531.26

Silver 29.842 30.420 30.939 31.292 32.450 31.961 33.551 32.626

Platinum 1,521 1,545 1,560 1,579 1,624 1,586 1,618 -

Palladium 638.90 658.29 659.92 655.33 675.31 672.62 672.64 -

CAD EUR GBP CHF AUD ZAR JPY as of:

1.0013 1.2938 1.6140 0.9284 1.0061 7.9966 79.6700 5/9/2012 15:36

CRB DJAIG Crude (fut) S&P 500 US 10 Yr US 30 Yr CDN 10 Yr as of:

294.83 135.91 96.52 1355.85 1.83 3.04 2.00 5/9/2012 15:36

This report has been prepared on behalf of Scotiabank and is not for the use of private individuals. The Scotiabank trademark represents the precious metals business of The Bank of Nova Scotia. Scotiabank, together with “Global Banking and Markets�, is a marketing name for the global corporate and investment banking and capital markets businesses of The Bank of Nova Scotia and certain of its affiliates in the countries where they operate. The Bank of Nova Scotia, a Canadian chartered bank, is incorporated in Canada with limited liability.Opinions, estimates and projections contained herein are subject to change without notice. The information and opinions contained herein have been compiled or arrived at from sources believed reliable but no representation or warranty, express or implied, is made as to their accuracy or completeness. Neither The Bank of Nova Scotia, its affiliates, employees or agents accepts any liability whatsoever for any loss arising from the use of this report or its contents. The Bank of Nova Scotia, its affiliates, employees or agents may hold a position in the products contained herein. This report is not a direct offer financial promotion, and is not to be construed as, an offer to sell or solicitation of an offer to buy any products whatsoever. This market commentary is regarded as a marketing communication. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and is not subject to any prohibition on dealing ahead of the dissemination of investment research. The Bank of Nova Scotia is authorised and regulated by The Financial Services Authority.

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May 09/2012 - Global Research Daily Gold & Silver Marketwatch