Financial news

Slowdown of the growth at precious metals market. Precious metals market review. 2 October, 2007

As of 2 October situation at precious metals market was characterized by quotations lowering. Today during morning trade session in Asia gold was characterized by lowering at the level $742,00-$733,00 per ounce. While opening New-York commodity exchange gold at bids was at the level $732,00. 1 October at commodity exchange in New-York closure was fixed at the point $746,90 per ounce.

Estimating the results of yesterday session of gold market, its growth slowdown is very notable. Yesterday market grew regardless such facts as lowered oil price and a little bit stronger US dollar rate. Traders acted on the premise of the chances on the next base rate shortening are more real anyway than quick «recovering» of American currency. Published statistics confirmed lowering of industrial activity in the USA, and reports of greatest banks marked negative circumstances of financial crisis in the third quarter. Significant part of investments inflow to gold market was connected with investors' desire to find more safe ways of funds placement in terms of current financial crisis. Now situation with prices of gold market will be gradually changed. The most important factors will be changes at oil market and US dollar behavior. Besides, at the end of the week there will be statistics on labor market of the USA and a lot depends on the indexes for gold market participants.

London morning fixing on 2 October constituted $735,75 per ounce, when the rate of National Bank of Ukraine was fixed at the mark $745,25 per ounce.

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