Financial news

Hopes of gold market participants for moving up are quite reasonable. Precious metals market review. 27 September 2007

As of 27 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 at the level $728,00-$730,00 per ounce. At the opening of New York commodity exchange the gold at the bid was at the level $734,00. 26 September the closing at New York commodity exchange was fixed at the figure $733,10 per ounce.

On Wednesday in the first morning hours of gold market operation the traders made an attempt to perform rally, but at the end of the day the market started to fall down. This time the fall was conditioned with the fact that American currency made a successful attempt of growth and the report about energy resources in the USA overcame forecasts about oil stock reduction, having indicated at their growth that resulted in decrease of the cost for "black gold". Nevertheless, market participants express their confidence that just this year price for gold will come close to the mark $800,00 per troy ounce. But estimating the factor of oil influence, one should hardly feel an excessive optimism relating significant price decrease. A continuous flow of negative economic statistics in the USA notes a serious slowing down of American economy growth rates. If one adds to this a season of increased demand for gold fro the side of physical purchasers, then one can easily say that hopes of gold market participants for moving up are quite reasonable.

London morning fixing 27 September made up $729,75 per ounce, whereas the rate of the National Bank of Ukraine was set at the mark $730,55 per ounce.

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