Financial news

Gold can exceed mark in $ 1 000 by the end of March already

As of 3 March situation at precious metals market was characterized by quotations increase. Today during morning trade session in Asia gold was traded at the level $978,25-$983,00 per ounce. While opening New-York commodity exchange gold at bids was at the level $981,00, then it decreased a little bit. 29 February at commodity exchange in New-York closure was fixed on the mark $984,80 per ounce.

Against the background of inflation increase a lot of analysts foresee that price on "gold metal" will cross psychologically important mark — $ 1 000 per troy ounce by the end of March already. In accordance with results of regular trade session at New-York commodity exchange NYMEX, contract on gold supply became more expensive on $7,50 (0,8%) — by $975,00 per troy ounce. During bids gold price reached new record mark — $978,50 per troy ounce. During a week gold price was heightened on $27,20 per troy ounce, or on 2,9%.

Recently pressure on US dollar has been caused by negative data on American economics condition and further interest rate decrease in the USA. One more important factor that causes gold price supply is problem with production in the South Africa. In this region serious troubles with electric energy supply into extractive enterprises were observed, as a result they can not work with total power. At present the only country that during last years increased gold extraction is China. Volume of gold extraction were decreased in other countries including Australia, Canada and the USA. In total all over the world volume of gold extraction during the period from 2000 to 2007 decreased on 6,7% even in spite of that fact that during this time price increased from $270,00 to $850,00 per troy ounce.

In accordance with data of Nymex, gold supply increased on 59813 of troy ounce — by 7,4 m of troy ounce.

London morning fixing 3 March constituted $978,25 per ounce, when rate of National Bank of Ukraine was set on the mark $969,00 per ounce.

Comments of Roman Valesyuk, Senior Vice-Chairman of the Board of PRAVEX-BANK on precious metals market. 3 March, 2008.

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