Financial news

Gold and silver prices stop escalating after oil prices drop

As of July 16 th , the situation at precious metals market was characterized by quotations stabilization before afternoon. Today at morning trade session in Asia , gold was traded at $969,570 — $973,51 per ounce. Gold trade on New York Mercantile Exchange was opened at $972,5 level, decreasing somewhat its positions afterwards . On July 15, New York Mercantile Exchange closure was fixed at $970,00 per ounce.

Gold and silver prices have stopped escalating on Tuesday after oil prices dropped (more than by 10%). The fact that gold has not dropped after oil, but only stabilized on July 16 th , gives evidence concerning the subsequent gold price increase in the nearest future.

According to COMEX trade results, August gold futures have gone up by $5,10 up to US $978,70 per Troy ounce. Silver futures quotations increased after gold against the background of weak US dollar position.

Trade results show that September silver futures have decreased after gold and oil quotations by 23,7 cents down to US $19,013 per ounce.

By July 17 th , gold price is expected within the range of $960,00-$970,00 per Troy ounce. Such a decrease in gold prices is caused by oil price drop.

London morning fixing on July 16 amounted to $974,00 per ounce, while the exchange rate of the National Bank of Ukraine was fixed at $981,75 per ounce.

Comments on precious metals market by Roman Valesyuk, Senior Vice-Chairman of the Board of JSCB PRAVEX-BANK. July 16, 2008.

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