Financial news

Gold quotations increase at precious metals market. Precious metals market review. 15 October 2007.

As of 15 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 $752,00-$756,50 per ounce. At the opening of New York commodity exchange the gold at bids was at the level $757,50. 12 October at commodity exchange in New York the closing was fixed at the figure $748,10 per ounce.

The work of session of gold market on last Friday was determined by several connected events. Before bids opening there were known details of many federal reports that caused quick growth of US dollar rate during the first morning hours. The events connected with US dollar did not cause special astonishment on the background of growth of total level of wholesale inflation and retail sales in the USA in accordance with the results of this year September. The first distinctly pointed out danger of return of inflation topic on the market, and the second so evidently confirmed both this danger and stability of rates of economic growth of the country. Increased during this day cost of US dollar caused lowering of precious metals market. On Wednesday in the USA there will occur retail prices data, report having especially important meaning for inflation estimation. However, now there are practically no doubts that price on «gold metal» is at the trend of growth. Such estimations are based, first of all, on the stable growth of physical demand on all precious metals including gold on behalf of physical buyers as well as industry.

London morning fixing on 15 October constituted $755,85 per ounce, when the rate of National Bank of Ukraine was fixed at the mark $748,50 per ounce.

Comments of Roman Valesyuk, Senior Vice-Chairman of the Board of JSCB "PRAVEX-BANK" on precious metals market.