Financial news

Situation at gold market just reflects movement at the foreign exchange market

Gold price on July 8, decreased though by the end of trade session there were tendencies towards former positions recovery.

In accordance with results of regular trade session at New York Mercantile Exchange, futures on gold supply became cheaper $4,80 — by $928,80 per troy ounce. During bids gold price fell to $916,60 per troy ounce.

While opening New York Mercantile Exchange gold at bids was at the level $921,00, then decreased by $916,60 per troy ounce during a day. July 8, at New York Mercantile Exchange closure was fixed on $916,75 per ounce. Today during morning trade session in Asia, gold was traded at the level $919,2-$931,4 per troy ounce.

Prices on gold and other precious metals depends on US dollar. During bids there was observed serious decrease of gold cost under the pressure of US dollar increase. According to analysts' remarks, situation at gold market just reflects movement at foreign exchange market.

At the beginning of the week, USD started growing against the main competitors at foreign exchange market. US growth was caused by optimistic mood at market places after oil prices decrease.  

But by the middle of the day US dollar started to loose its positions against background of return at market places. Dollar Index allowing to evaluate US dollar relating to basket of six main world currencies, decreased from 73,104 to 72,668. Gold started to win back expenses incurred earlier. London morning fixing on July 8, made up $921,00 per ounce, when rate of the National Bank of Ukraine was set on mark $920,99 per ounce.

 Comments by Roman Valesyuk, Senior Vice-Chairman of the Board of JSCB "PRAVEX-BANK". July 8, 2008.

[You can subscribe for Banks news]