Financial news

Quotations lowering at precious metals market. Precious metals market review. 8 October, 2007

As of 8 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 $740,00-$734,00 per ounce. While opening of New-York commodity exchange gold at bids was at the level $734,00. 5 October at commodity exchange in New-York closure was fixed at the mark $741,30 per ounce.

Gold market was able to grow at the last bids on Friday. In accordance with federal statistics number of working places in September increased on 110 thous., and it determined market forecasts. It played a role of catalyst of US dollar growth that immediately caused gold market slowdown. A little bit later other figures of reports were known. This time it was going about increasing threat of inflation and unemployment level in the country that again renewed interest to gold purchase. Now market participants express their point of view that FRS the USA this year will have to decrease again rate amount to give additional impulse to economy growth of the country in the last quarter, when the USA population will prepare to New-Year celebrations and vacations. The USA will hardly allow decrease of consumer demand level during this period. Issue becomes political, there will be too little time to new election.

London morning fixing on 8 October constituted $736,5 per ounce, when rate of National Bank of Ukraine was fixed at the mark $735,85 per ounce.

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