Financial news

Increased interest of investors to the gold. Precious metals market review. 18 September 2007.

As of 18 September the situation at precious metals market was characterized by quotations stability. Today during morning trade session in Asia the gold was traded in the range $716,00-$719,00 per ounce, and at the opening of New York commodity exchange the gold at the bid was at the level $719,00 per ounce. 17 September at commodity exchange in New York the closing was fixed at figure $714,70 per ounce.

Gold market absorbed into itself a confidence that at today FOMS sitting the size of discount rate will be decreased. Yesterday session was finished with a new growth of prices of futures contracts for gold. Such an increase of investors' interest to the gold market was provided by weak US dollar and decrease of the cost of actually all raw material goods. An interesting situation is formed where oil prices growth is also supported by weak US dollar factor. Price growth for energy recourses inevitably strengthens inflation risks and gold is one of the most reliable means to protect investments from inflation. If we suppose that these problems which are dealt now by USA economy with, can not be resolved only by the rate volume decrease, then it is not difficult to guess that gold market still has a sufficient safety factor for growth continuation.

London morning fixing 18 August made up $717,70 per ounce, while the rate of the National Bank of Ukraine was set at the mark $710,25 per ounce.

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