Mr. Pawlicki: MF Global is a world leader in execution and clearing services for exchange-traded and OTC derivative products. We help a wide range of clients define and execute trading and hedging strategies. MF Global's research arm provides in-depth daily analysis of market events and assists clients in determining their impact on trading activity.
TWST: Your focus is on the broader scale of gold, not down to the nitty-gritty company level, correct?
Mr. Pawlicki: Yes, that's correct.
TWST: Given that, where we are with gold prices?
Mr. Pawlicki: I think it's been a cycle-type trade, where the market has focused on the fact that the economy has slowed over the last several years and governments have used deficit-funded stimulus to attempt to achieve prosperity. In the U.S., the dollar has fallen as we continue to expand the monetary base to avert the credit crisis and the problems that have emanated from that. Now the focus is turning toward concern about the threat of inflation as the cycle begins turning toward the upside and toward the prospect that the Fed would start to take away its accommodative monetary policies. So in that regard, gold still has some attractiveness based on the prospects for monetary policy to remain accommodative and for the prospect of inflation down the road.
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