Dynamics
Tuesday, February 2 quotes for gold, and silver closed with an increase in price on the back of weak U.S. dollar in the foreign exchange market, FOREX, and also because of the positive dynamics of neighboring markets and stock exchanges.
According to the results of trading on the COMEX, division of the New York Mercantile Exchange (NYMEX), quotes gold futures rose by 13.00 to 1118.00 dollars per troy ounce, quotes, silver futures rose 8 cents to 16.74 dollars per ounce.
Causes
Tuesday, February 2 futures on precious metals have completed trades with an increase in the price of the following factors: 1 - the decline of the dollar in the FOREX market against a background of increasing risk appetite after economic makrostatistiki and news, to reassure them that the United States withdraws from the recession (the National Association of Realtors USA reported that the index of signed contracts for the sale of housing in December rose by 1%, although it is expected that the rate will remain unchanged) 2 - Economic News - the assumption that the European Commission on Wednesday approved a plan by the Greek budget deficit reduction have provided support for more risky assets - a Greek plan is important both for Greece itself, and for other countries in the eurozone, and 3 - positive dynamics of stock exchanges, where the major U.S. stock indexes closed in the Green Zone with the support of strong financial reports (Dow Jones industrial average - 10296.85 (111.32, or 1.09%), Nasdaq Composite - 2190.06 (18.86, or 0.87%), SP 500 - 1103.31 (14.13, or 1.30%)), 4 - technical reasons - the level of resistance in the area of 1100.00 dollars per troy ounce was reached, thereby serving as a one of the positive signal for investors to open long positions and 5 - to strengthen the adjacent markets, namely the rise in prices for crude oil market.
silver futures rose after gold futures. However, the growth of silver was not as significant in percentage terms. Perhaps, the growth was restrained by some co1000ncerns about industrial demand for silver in the 2 nd quarter.
From news can note that in 2009. Iamgold company produced 930 thousand ounces (28.9 tonnes) of gold, which is 7% higher than predicted. This result was achieved mainly by increasing production at the main project of the company - Rosbel gold deposit in Suriname. The average cost of production, as expected, in contrast, fell from 470 to 460 dollars per ounce. The expectations of company management, production of gold in 2010. should be from 29 to 31 tons of metal at an average production cost of 490-510 dollars per ounce.
What to expect?
Traditional purchase of precious metals in the early years of the funds, the general improvement in investor sentiment, as well as lowering the U.S. dollar will provide sustained support for 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.
The data on reserves can contribute to opening of short positions on the “oil industry”
Investors are still wary of shares in Rosneft: at the first negative signals of the market followed by sales
If the external sites will develop a second wave of downward movement, the Russian market, too, may well prosest
The technical analysis of currency pairs 03.02.2010
Yesterday, the U.S. site of the second day in a row showed 1% growth
Global giants do not complain about the lack of profit
Cabinet received the court”s decision to suspend the appointment of acting Lutsenko Interior Minister
Defective gas pedal obodetsya Toyota in 16,4 million dollars. “
Costs undermine budget