Analysis

	World Financial Market for the week of March 4th- 11th, 2008.

The European and American stock markets started the week with a decline. The Dow Jones Index fell below 11,850 points, but on Tuesday rose to the resistance line of 12,000 points. The German DAX was growing too. In other words, the January highs, which were tested on Monday, became a good ground for massive share purchase. How strong this growth will be is to be seen, but so far there is doubt in its length as the negative information in relation to the credit crisis is continuously appearing. The uncertain future of the American economy, a possibility of recession are making investors nervous.
    Gold.
  Repeated attempts to go through 993 to 1,000 dollars per ounce have not succeeded, and the rate dropped to the support of 964 dollars per ounce.
This was prompted by the US trade balance published on Tuesday, which exceeded the expectations.
It will be hard for gold to go over the range limit of 950(930) - 993 dollars per ounce. On Friday the Consumer Price Index (CPI) will be published. If it’s worse than expected, this will be a sign in the market of a possible break in the actions of the FRB for the monetary policy weakening.  The dollar may strengthen, which will result in gold prices dropping to the lower limit of the range.
          Silver.
All the above-mentioned refers to silver as well.  Due to profit taking the rate has rebounded from the highs to 21.22 dollars per ounce for 2 dollars (almost 10%).
The further events may be around the support at 19 dollars per ounce. Upon reaching that level the prices will go to 18.80 and 18.50 dollars per ounce.
     Crude oil.
From 105.8 the rate went down to 103.5 dollars per barrel. The support is at 101.5 and 100 dollars per barrel.
In case the tendency of the local dollar strengthening continues, the testing of 100 dollars per barrel is quite possible in the near future.
 The first approach to this level will be accompanied by purchases, which will raise the rate to 103 dollars per barrel.

The dollar fall is gradually slowing down. Even in the speeches of J-K. Trichet and his American colleagues there are signs of cautious attitude to the current events.  Moreover, it has been mentioned that the market shall not expect from the FRB a further rate reduction. There is just a week to wait.