Financial news

Gold price is increasing

As of 29 February, situation at precious metals market was characterized by quotations increase. Today at morning trade session in Asia gold was traded at $968,00-$974,00 level per ounce. At New York commodity exchange opening gold at bids was at $972,00 level, afterwards it decreased somewhat its position. 28 February New York commodity exchange closure was fixed at $968,10 figure per ounce.

Gold price on Thursday renewed its record. Futures price in New York achieved during the bids US $975 mark per Troy ounce, and at session closure constituted $967,5 per ounce which is by $6,5 higher from Wednesday index.

New gold record was caused by US dollar-to-euro rate fall and oil price increase up to a new historical maximum mark.

On Friday at Asian bids precious metal value also showed a new record. Gold price with immediate delivery increased by 0,3% — up to US 973,38 per ounce, and then was corrected up to US 971,7 per ounce. On Thursday, futures price on oil closed the bids at unprecedented high level against the background of the same unknown depreciation of dollar. Prices on gold and other precious metals increased on Thursday in New York up to unprecedented values. It was caused by investors' fears as regards further development of the US economy, dollar depreciation, oil price increase and recession at stock exchange markets.

Gold price has never been at this mark, silver has not achieved this level for the past 27 years, while palladium price is equivalent only to the figure it had in 2001.  Expected interest rates decrease in the USA which can further abate dollar, also stirred up gold price growth.

London morning fixing on 29 February constituted $969,00  per ounce, while National Bank of Ukraine rate was established at $957,00 mark  per ounce.

Comments on precious metals market  by Roman Valesyuk, Senior Vice-Chairman of JSCB PRAVEX-BANK Board. February 29, 2008.

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