Financial news

Gold stability at precious metals market. Gold market review for 18 October 2007.

As of 18 October the situation at precious metals market was characterized by quotations stability. Today during morning trading session in Asia the gold was traded at the level $758,00-$760,00. But at the opening of  New York commodity exchange the gold at bids was at the level $764,00. 17 October at commodity exchange in New York the closing was fixed at the figure  $757,00 per ounce.

Precious metals market is slowing down gradually. Probably this is the result of the fact that price for oil approaches to limiting values for this period. Traders do not doubt that there is no serious threat to the "bulls'" positions at gold market in more remote prospect. It is sufficient to get acquainted with the decision of Turkey parliament which approved performance by Turkish army of military operation against Kurd militants in Northern Iraq to understand the rate of the potential of gold price growth if hostility would start there soon. US dollar yesterday showed a decrease, market support was strengthened also by the issued economic reports indicating a significant weakening of the situation not only at housing market of the USA, but also all over the whole country, at least, in its main industrial regions. But as soon as oil market started to take a profit in the second half of the day, it was followed by analogous changes at gold market. However, now there are negative forecasts based on the fact that if stock market of the USA  shows more vigorous reduction rates, then its participants would have to deal with the problem of losses closing and gold sale would be required for this. Coming sessions can confirm or refute concerns.  

London morning fixing 18 October made up $758,35 per ounce, while the rate of the National Bank of Ukraine was set at the mark $759,75 per ounce.

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