Last week most stock indices were thrown down and the week was reported as the weakest in history. Over the weekend, however, leaders of the G-7 have developed an action plan. The European officials offered to guarantee a portion of the banks debts and if necessary to inject public funds into individual banks. U.S. government representatives announced that it will take stakes in individual banks, which would be the first such move since the Great Depression. Australia already guaranteed the bank deposits and the UK is ready to pour more than 40 billion pounds in the four largest banks.

Spate of initiatives stopped far the worst financial crisis since 1930 and encouraged investors to carry out purchases, although analysts are not convinced how long these moods will last. They added that today's rise Asian indices is quite fragile. Australian shares reported this morning very strong growth of nearly 4 percent, and the increase in one moment reached even 6 percent. Last week the exchanges collapsed although central banks lowered interest rates on their coordinated action, but were adopted too little and too late made. Investors mass panicked and sold shares, major currencies and even government bonds in order to get cash. Revitalization loans between banks, which depends on the functioning of the global financial system is at the heart of any rescue plans.

Trading today is less because Japan has a national holiday and U.S. bond market will remain closed for the holiday on Columbus Day. The yen rose last week, making big gains, which in its average weighted index is more than 8 percent, due to the mass eradication of carry trade positions. Most dealers today are cautiously encouraged that the worst of the crisis in financial markets is over. Today became clear that the Japanese "Mitsubishi UFJ Financial Group" negotiates terms of investment amounting to 9 billion dollars in "Morgan Stanley", which was accepted by the investors as a positive development. However, concerns still remain for lost assets in expectations in banks, hedge funds and other firms engaged in sales on behalf of "Lehman" to face losses of 365 billion dollars on these contracts.

Last weeks are marked by huge volatility, which caused investors and hedge funds to avoid trade that did make intra day moves much stronger than usual.

The gold price rose by over 1 percent after on Friday to destroy. Today the increase is due to the weakness of the dollar against the euro, which came after agreement between European leaders to take rescue plan to help the banking sector. While prospects for a decline in financial crisis will decrease investors interest to demand relative safety of metal, these developments will prevent large-scale liquidation of positions, which also took place on Friday, when he was a quick collapse of almost 65 dollars, which is the largest decline after 1980. Spot price today is higher by 13.60 dollars and this is 1.6 percent to 861.00 dollars for oz closing on Friday at levels of 847.40 dollars on oz when the price moved in unprecedented range of almost $100. Growth on the currency exchange markets also support gold. A new rise of the dollar, however, which likely will follow the stabilization of exchange indices, would be bad news for gold price.

Meanwhile, today's growth in oil deter dealers from sales of the precious metal. While there is no oil news, fuel prices restored and today at the opening of European markets at 10 o'clock this morning they rose by 3.53 dollars to 81.23 dollars level for the barrel.