Financial news

Return of maximum gold market growth for the last 28 years. Precious metals market review. 11 October 2007

As of 11 October 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 $743,00-$747,00 per ounce. At the opening of New York commodity exchange the gold at bids was at the level $746,00. 10 October at commodity exchange in New York the closing was fixed at the figure $739,80 pre ounce.

Yesterday according to the results of gold market session the price of December future grew up again. Gold market returns to its maximum figures for the last 28 years and now is close to psychological boundary $750,00 per troy ounce. How quickly will the market manage to overcome this technical barrier of growth restraining, will, most probably, depend on US dollar behavior in the nearest time. Participant of all without exclusion markets watch attentively the development of withstanding of two main world currencies — US dollar and euro. Decisions on the rates of corresponding CB are considered to be the main leverages that can influence on change in t heir parity. At the end of this month the next FOMC meeting will take place and now market makes forecasts concerning one more cut in discount rate amount. Long-term forecasts on gold market remain to be strong both till the end of this year and for the whole 2008. There is still even no slightest sign that world demand for "yellow metal" can become weaker.

London morning fixing 11 October made up $747,50 per ounce, whereas the rate of the National Bank of Ukraine was set at the mark $740,50 per ounce.

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