Analysis

	World Financial Market for the week of February 25th – March 3rd, 2008.

The US dollar fall against the major world currencies strengthened last week. It was mostly reflected in the commodity markets, where the oil price got over the psychologically important mark of 100 dollars per barrel. In view of FRB Chairman B. Bernanke statement on continuation of the monetary policy weakening, panic was reining in the markets. It has become obvious that the USA is going to solve their problems at others expense. Gradually the problems are starting to appear in Europe, but it is going to have the strongest effect on the developing markets.
  
   Gold.
The forecast of the price drop from 954 to 920 dollars per ounce was realized only partially. The low was at 926 dollars per ounce.
The break through above 954 rubles per ounce last week marked the upward goal of 975 dollars per ounce, mentioned in the previous overview. It was achieved and broken through. The high was at 990 dollars per ounce. The nearest resistance is at the psychologically important mark of 1,000 dollars per ounce. The break through this level by gold may happen in the near future if we take into account the fact that silver has been traded at 20 dollars per ounce.
The trend support line is at 978 dollars per ounce. Upon declining to 976 dollars per ounce, sales may become more active, pushing the rate to 965-968 dollars per ounce.
A correction to 950-954 dollars per ounce connected with profit taking will result in new long positions with the goal of repeated testing of 985 dollars per ounce. Upon the break through down to 950 dollars per barrel the supports are at 935 and 920 dollars per ounce. Above 1,100 dollars per ounce the strong resistance is only at 1,100 dollars per ounce.
 
    Silver.
The first approaches to 18.20 dollars per ounce were accompanied by sales, which reduced the price to less than 18 dollars per ounce.  Purchases from 17.75, 17.87 and 17.94 resulted in immediate break through 18.20 and 18.50 per ounce, mentioned in the previous review. After that the rate reached the wave level of 20.25 dollars per ounce, which hasn‘t yet resulted in a correction. The main supports are at 19.50 and 18.80 dollars per ounce. Purchases in the short term may be started from 19.80 and 19.36 dollars per ounce. The dollar fall on the whole range of instruments is continuing. Since mid-December silver has increased by almost 50%. The growth within the last few weeks happened without any significant corrections, therefore it’s reasonable to sell upon retest of the highs over 20.60 dollars per ounce, with a stop-turn upon a break though 20.75 dollars per ounce with the goals of 21.36, 21.44 and 21. 52 dollars per ounce.
The uncontrolled dollar emission along with the growing debt of the USA has become a source of distrust to the existing financial system, which allowed the mortgage crisis to continue.
The stock markets are obviously feverish. The German DAX dropped within the last few days from 7,000 to 6,620 points. The Dow Jones Index dropped to 12, 150 points.
If in the near future the dollar problems strengthen, the investors intention to transfer money from shares to commodity markets will become more obvious. This will result in growth of crude oil, metal and provision prices.