Financial news

Dollar supports gold. Precious metals market review. 30 August, 2007.

Comments of Roman Valesyuk, Senior Vice Chairman of the Board of JSCB "PRAVEX-BANK"

As of 30 August the situation at precious metals market was characterized by quotations decrease. Today during morning trade session in Asia the gold was characterized by decrease in the range $666,00-$664,00 per ounce, and at the opening of New York commodity exchange the gold at bid was at the level $665,30. 29 August at commodity exchange in New York the closing was fixed at the figure $665,60 per ounce.

 Main factors of gold market support are the decreased US dollar rate, the increased activity of stock market and "black gold" barrel price. In front of investors a shadow of approaching inflation appeared again and the interest for purchase of the most protected from this disease gold was increased. Yesterday stock market activity boom caused by much more enhanced expectations of quick decrease by FRS of basis interest rate, supported raw material markets, including gold. Because of this very reason the interest to US dollar decreased. As for oil, the support in growth of this most influencing type of raw material on inflation indexes was made by the USA Department of Energy report which was published yesterday, where figures on oil and gas stock decrease in the country were shown. The increased interest to gold purchase is supplied by growing demand from the side of physical buyers.

London morning fixing 30 August made up $666,30 per ounce, while the rate of the National Bank of Ukraine was set at the mark $664,75 per ounce.