Financial news

Quotations increase at precious metals market

As of 23 January situation at precious metals market was characterized by quotations increase. Today during morning trade session in Asia gold was traded at the level $888,00-$890,00 per ounce. While opening New-York commodity exchange gold was adjusted by the mark in $878, and then increased by $896. 22 January in the USA at regular meeting of FRS interest rate was lowered from 4,25% to 3,50%, that in its turn impulsed gold strengthening.

Yesterday gold and other precious metals were traded in unstable way. Firstly prices at precious metals market decreased due to stock indexes decrease, and then abruptly increased following decision of Federal Reserve System of the USA to decrease interest rate. But though recently expectations of prices increase prevail at the market, it is necessary to treat carefully this increase, as stock indexes decrease can be renewed.
Decrease of FRS rate on 75 basis points and US dollar decrease influenced directly market of gold and silver, investors closed part of short positions and purchased at lower levels.
London morning fixing constituted USD 887,80 per ounce, when rate of National Bank of Ukraine constituted 862,00.

Comments of Roman VALESYUK, Senior Vice-Chairman of the Board of PRAVEX-BANK on precious metals market. 23 January 2008.

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