Financial news

Gold market breaks new growth records. Precious metals market review. 16 October, 2007.

As of 16 October situation at precious metals market was characterized by considerable quotations fluctuation. Today during morning trade session in Asia gold starting from the mark $758,00 per ounce, grew by the level $766,00, and then again decreased by $757,00. While opening New-York commodity exchange gold at bids was at the level $757,00 and started to grow. 15 October at commodity exchange in New-York closure was fixed at the figure $756,90 per ounce.

Gold market breaks all new records of growth. The main catalyst of the growth during yesterday session were events at oil market. Ascending by inflation threat, gold market enlarged purchases volume on behalf of various investment funds. At the same time now at the market of «yellow metal» there appear more and more warnings that in spite of high level of current prices growth propriety, market is approaching overpurchase line after which can follow correction. It is probably due to this reason volume of purchase of the market on behalf of physical buyers was weakened a little bit for the last several days. US dollar makes considerable contribution to interest increase to gold purchase which rate is constantly decreased. Besides, starting since the last week the situation becomes more and more aggravated between Turkey and Iraq. Soon parliament of Turkey can approve military operation in this region, and then there appears serious threat of new geopolitical conflict development in the Middle East. If conflict leads to the problems with oil supply from the region then it will hardly be possible to restrain prices at oil and gold market.

London morning fixing on 16 October constituted $761,75 per ounce, when the rate of National Bank of Ukraine was fixed at the mark $755,85 per ounce

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