Financial news

Precious metals market review. 22 October, 2007

As of 22 October situation at precious metals market was characterized by quotations lowering. Today during morning trade session in Asia gold was characterized by lowering at the level $764,00-$750,00. While opening New-York commodity exchange gold on bids was at the level $749,50. 19 October on commodity exchange in New-York closure was fixed on the figure $763,60 per ounce.

Price of December futures on gold in accordance with Friday bids was lowered a little bit. These events, probably, one can refer to correction category. The reason for performance of this correction was starting growth of US dollar rate in morning hours. To the favorable factors one should refer decrease of rates of growth of energy sources market. Judging by incoming estimations, at the market there is marked slowdown in demand on oil because of high prices. More reliable support is US dollar, which rate is weak. Reached by this time level of gold market growth corresponds to the current factors of support and external conditions. Besides it means a new geopolitical conflict, bursting on the boarder between Turkey and Iraq. It is probable that taking into account all mentioned factors, market revises now forecasts on gold on 2008 — 2009 in its cost increase, considering mark in $800,00 as minimal price of troy ounce.

London morning fixing on 22 October constituted $755,60 per ounce, when rate of National Bank of Ukraine was fixed on the mark $768,25 per ounce.

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