Market Analysis

Dynamics
On Thursday, Jan. 28 quotes for gold and silver reached nearly three-month low against the dollar strengthening in the currency market FOREX, and also due to the fall of neighboring markets and the weak dynamics of the stock pads, but later quotes almost completely restored the lost ground due to purchases on technical factors.

As a result of trading on the COMEX, division of the New York Mercantile Exchange (NYMEX), quotes gold futures dropped to 0,90 to U.S. $ 1084.80 per troy ounce, quotes, silver futures fell 23 cents to 16.21 dollars per ounce.

Causes
On Thursday 28 January futures on precious metals have completed trades with a decrease in price under the following factors: 1 - strengthening of the dollar in the FOREX market against the backdrop of economic makrostatistiki and news (the number of Americans who have applied for unemployment benefits fell to 470,000 last week - the forecast was 450,000, while orders for durable goods rose by only 0.3% - forecast at 2%), 2 - negative dynamics of the stock sites, where U.S. stocks surrendered the position, led to lower sector technology companies under the influence of economic news and quarterly reports (Dow Jones industrial average - 10120.46 (-115.70, or -1.13%), Nasdaq Composite - 2179.00 (-42.41, or -1.91%), SP 500 - 1084.53 (-12.97, or -1.18 %)), 3 - reduction in adjacent markets, namely the falling price of oil market; 4 - technical reasons - the sale of gold could be partly due to the fact that futures failed to hold above U.S. $ 1100.00 in recent attempts to increase, with each time when the quotes come in the lower part of the district in 1080 dollars, a relatively good demand, which prevents further decline.
&f5aamp;lt;br /> Futures platinum managed to close with a raise. Platinum continues to receive some support in the form of investment demand on the background running in the U.S. traded index funds on platinum and palladium. Rising prices of platinum can also contribute to improving the situation in the automotive industry, through which to grow the demand for catalytic converters using platinum.

What to expect?
Traditional purchase of precious metals in the early years 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.

Russia"s confidence indexes went up after exceeding the expectations of data on U.S. GDP for the 4th quarter last year
MICEX index compared with the value at closing of the previous trading day increased to 0.432%
Railways and the Austrian Alpine Bau GmbH have created a joint venture to build two tunnels for the Olympic Games in Sochi
Index of the Frankfurt Stock Exchange Ksetra DAX (Xetra DAX) rose by 58.38 points
Return to the Ukrainian Foreign commercial loans are unlikely to approval of budget
Head of the Parliamentary Agricultural Committee proposes to abolish state regulation of the sugar market
Medvedko: Supreme hozsud Ukraine January 27, 2010 established the identity "Mezhigorie" firm "Tantalite"
ECB: Banks of the euro zone continued to tighten lending rules in the IV quarter
The average result for a week on all the most liquid securities is in the area of zero

News International Markets