The market optimism because of the Treasury new plans for buying more toxic assets to spur investing and borrowing again could contain the current market sentiment with the beginning of this week. The equities markets have opened higher waiting for today's Geithner details of the new plan and from another side, the US Feb home sales came surprisingly up by 5.1% and the market was expecting a decline by 5.3% adding to the stock market gains. The home sales of been 4.72m and it was 4.49m in Jan and the market was waiting this number to decline to 4.45m.

The gold was well supported in spite of the equity markets rising just shy of breaking 960$ resistance. The gold as we have mentioned recently can have a boost by these quantitive easing policies measures as this should increase the supplied money in the financial system and the commodities and the gold at the top of these commodities. The rising of the oil prices today amid a wave of confidence today could underpin the oil prices which can help the gold prices from another side as a mirror of inflation. The gold is still taken as a safe haven position in the times of the recession persisting and the losing trust in the assets buying which underpin the gold prices because of this credit crisis.

Best wishes

FX Consultant

Walid Salah El Din

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