Yingxi Yu Prices Quotations

Given the way the market has been trading over the past few days, we are very likely to see prices testing another 25-year high again this week.

We have not seen evidence of good physical demand at lower levels. Prices have been primarily driven by funds and, therefore, are vulnerable to sell-offs, should funds decide to exit the market.

We see some positive factors that could potentially bring prices near the top of this range.

We will not rule out the possibility of further weakness and prices are likely to remain volatile in a broader range.

The strong price action and impressive technical trends in various currencies suggest prices should remain elevated in 2006.

Prices are being driven up by hedge funds, which are buying platinum because its fundamentals are looking good. Platinum has been in deficit for the past six years, and it's expected it will be in deficit this year.

The weaker (gold-dollar) correlation late last year and early this year was due to the overwhelming enthusiasm among the speculative community to drive prices higher.

This has the potential to push prices higher. Gold has always had a traditional role as an asset which holds its value in times of uncertainty.