February 20th, 2010
Dynamics
On Friday, Jan. 22 quotes for gold and silver have completed trades with a decrease in value against the backdrop of the overall negative tone of tender, but also because of the negative dynamics of equity markets and adjacent areas.
As a result of trading on the COMEX, division of the New York Mercantile Exchange (NYMEX), quotes gold futures dropped 13.50 to 1089.70 on dollars per troy ounce, quotes, silver futures fell 58 cents to 16.93 dollars per ounce.
Causes
On Friday 22 January futures on precious metals have completed trades with a decrease in price under the following factors: 1 - low risk appetite on the background of the threat of higher interest rates in China and fears about the financial situation in the euro area currently has strong pressure on prices, but longer-term investors view gold as an asset of refuge against the backdrop of economic uncertainty, 2 - the fall of the stock sites, where the major U.S. stock indices closed in the red zone after the quarterly reports and economic news (Dow Jones industrial average — 10172.98 (-216.90, or -2.09%), Nasdaq Composite - 2205.29 (-60.41, or -2.67%), SP 500 - 1091.76 (-24.72, or -2.21%)), 3 - negative dynamics of the neighboring markets, namely the fall oil prices to new minima, 4 - technical reasons - the last time when prices fall below U.S. $ 1100.00 a trend for increased purchases of gold by the Indian participants of the market, which buy the precious metal for jewelry purposes, as well as investors in the market, but at the present session He was overcome and could not provide adequate support.
What to expect?
Traditional purchase of precious metals in the early yeard1fs of the funds, the overall improvement in investor sentiment, as well as decrease the U.S. dollar will provide sustained support to the quotations of gold and silver. However, the situation could change dramatically if the dollar will resume its strengthening, as the inverse correlation between the dollar and the prices of precious metals continues.
Why worry?
volatile changes in the currency market may be reflected in the sharp fluctuations of prices for precious metals.
In the case of rapid growth on the sites of the U.S. market could again emerge wave of purchases
Russia market is trading with a slight increase is unlikely to present suspension of the fall will grow into a significant increase
Growth significantly better than the market shares of the electricity sector show
FTS: Income from mineral extraction in the federal budget in 2009 because of declining oil prices declined in 1,6 times
The technical analysis of currency pairs
Spyker, according to unofficial sources, is preparing to announce the purchase of Saab by GM
Poroshenko underlines the need to increase the level of trade turnover between Ukraine and Russia
The actd65s of the dynamics of oil and gas sector has been controversial, better than the market hold shares in Rosneft and Tatneft
As a result of the second half of the trading day on Monday, the dollar rose to the ruble at 0.88% to 30.103 rubles



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