Financial news

Oil prices decrease caused pressure on gold quotations

As of July 8, situation at precious metals market was characterized by quotations decrease. Quotations on gold futures on Tuesday decreased against background of sharp oil prices decrease and USD increase, but gold managed to renew part of losses at the expense of closure of short positions at the end of the session.

In accordance with results of bids at New York Mercantile Exchange, August gold futures decreased in price on USD 5,50 — by USD 923,30 per troy ounce. While New York Mercantile Exchange opening gold at bids was at the level of $929,25, while closing — $921,00 per troy ounce.

Closure of short positions at the end of the session happened due to the fact that "crude oil stopped decreasing" and increased from minimum level, and USD increase turned out to be insignificant.

During bids gold losses were more evident. Oil price decrease caused pressure on gold quotations. Besides, the same factors determined correction taking into account large range of raw materials products.

Being under pressure the majority of a day, as other raw materials, silver futures managed to close increasing 4 cents — with USD 17,96 per troy ounce against background of short positions closing, as gold managed to renew part of losses.

Silver follows gold.

Platinum and palladium futures became less expensive as well against background of total sales of raw materials products.

Quotations of October platinum futures decreased in price USD 30,90 — by USD 1 952,90 per ounce, and September palladium futures became less expensive on USD 7,10 — by USD 442,45 per ounce. Palladium became cheaper following platinum.

Today during morning trade session in Asia gold was traded at the level $918,40-$928,10 per ounce.

London morning fixing on July 9, made up $923,25 per ounce, when rate of the National Bank of Ukraine was set on $929,25 per ounce.

Comments by Roman Valesyuk, Senior Vice-Chairman of the Board of JSCB "PRAVEX-BANK" on precious metals market, July 9, 2008.

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