Financial News and Economical Crisis

Dynamics
On Friday, Jan. 29 quotes for gold and silver closed with a decrease in value against the background of strengthening U.S. dollar on the foreign exchange market, FOREX, and also because of the negative dynamics of neighboring markets and equity grounds, 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 1.00 to U.S. $ 1083.80 per troy ounce, quotes, silver futures fell 2 cents to 16.19 dollars per ounce.

Causes
On Friday 29 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 U.S. government reported that U.S. GDP in the 4 — quarter grew by 5.7% - the data is much higher than forecast, the projected growth of 4.8%, while PMI (PMI) and Chicago”s Consumer Sentiment Index University of Michigan, published later, also turned out to be better than forecasts), 2 — negative dynamics of the stock sites, where shares of the major U.S. stock indexes closed in negative zone (Dow Jones industrial average - 10067.33 (-53.13, or -0.52%), Nasdaq Composite - 2147.35 (-31.65, or -1.45%), SP 500 - 1073.87 (-10.66 or -0.98%)), 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 growth, while every time quotes fall into the lower part of the district in 1080 dollars, a relatively good demand, which prevents further decline.
During the session, platinum futures followed gold futures, but it is better they bargained. Thus, when futures for gold has risen from lows, platinum has risen in price too. Moreover, the continuing demand associated with stock-market index funds, continues to have a positive impact on platinum. The new index funds on platinum and palladium to start trading in the U.S. this month. These funds create a physical demand as the metals themselves are placed on deposit as security for their shares that are traded like a stock market instruments, but follow the price of the relevant raw materials. Some support might also have reported that Toyota, may have found a solution to the problem that caused the delay in sales of several models of cars of this company in the United States.

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.

The U.S. economy grew
Forex - in the European session
Bidding on the market place against a background of high volatility, the leaders reduction Rosneft and Gazprom Neft
In the steel sector now dominated by selling on the background of reducing the cost of industrial metals
The market remained “bullish” idea: “Gazprom jumped inside the day up to 2.5% on the results of financial statements for the III quarter 2009
Now on the market, the weak position of Russia in securities NLMK, they look worse than their steel counterparts
In 2009 RusHydro sent 8.5 billion rubles in technical renovation and reconstruction of the generating facilities
In the 4 th quarter of 2009, Mechel cut coal production by 4% to 5.434 million tons
Net profit of Rosneft on US GAAP for 2009 decreased by 36% to $ 6.514 billion