Financial news

Gold market made a jerk up. Precious metals market review. 12 October 2007

As of 12 October the situation at precious metals market was characterized by quotations stability. Today during morning trade session in Asia the gold was traded at the level $746,00-$747,50 per ounce. At the opening of New York commodity exchange the gold at bids was at the level $748,00. 11 October at commodity exchange in New York the closing was fixed at the figure $751,30 per ounce.

Gold market according to the results of yesterday session made a jerk up against the background of the next fall of US dollar and growth of oil prices. Main purchasers of the market were broker companies. On this day the market got especially many warnings that inflation threat is not so far. The first message came from Europe where Axel Weber, who is a participant of the Council of European CB, announced that the Bank just suspended the increase of the rate amount in Eurozone, but in case of necessity it would be increased up to "limited" level. In the USA some reports have been published which stated that inflation problem remains being serious in the USA economy too. The increase to the interest to gold purchase was promoted also by information from SAR about problems of the countries gold-mining complex, connected with interruptions in energy supply and increased rate amounts levied from gold-mining enterprises. Yesterday new estimations appeared according to which in the next year there should be an increase of industrial demand for gold and other precious metals used in jewelry, automobile and electronic industries.

London morning fixing 12 October made up $748,50 per ounce, whereas the rate of the National Bank of Ukraine was set at the mark $747,50 per ounce.

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