Financial news

Activity increase in gold purchase from the side of funds. Precious metals market review for 20 September 2007

As of 20 September the situation at precious metals market was characterized by quotations increase. Today during morning trade session in Asia the gold was characterized by increase in the range $722,00-$730,00 per ounce, and at the opening of New York commodity exchange the gold at bid was at the level $729,00. 19 September at New York commodity exchange the closing was fixed at the figure $720,70 per ounce.

Already today many people ask themselves a question, if FRS's decision about decrease of the volumes of base and discount rates was responsible. Facilitating access terms to credit means, FRS jeopardizes to be late with obtaining of reverse positive effect in the form of economic activity growth in the country. Heating season is approaching and prospects of demand growth for energy resources remains quite high. The decreased US dollar cost helps not only to gold market growth, but also to interest increase for purchases at all main raw material markets, including precious and industrial metals, oil and grain. This means a new growth of costs for these goods and high inflation risk. According to the results of yesterday session of precious metals market the cost of December futures for the gold increased by $729,50 per ounce. The activity in gold market purchase significantly increased from the side of different funds that strengthened even more the trends of its further growth.

London morning fixing 20 September made up $727,75 per ounce, while the rate of the National Bank of Ukraine was set at the mark $723,75 per ounce. Comments of Roman VALESYUK, Senior Vice Chairman of the Board of JSCB "PRAVEX-BANK" on precious metals market, 20 September 2007.