Financial news

Quotations of futures for precious metals increased by the highest level

On Friday, July 11, quotations of futures for precious metals increased by the highest level for more than three months against background of geopolitical apprehensions and situation in financial sector, record oil prices increase, weak US dollar as well as inflationary fears.

In accordance with results of bids at New York Mercantile Exchange, August gold futures became more expensive USD 18,60 (almost 2%) — by USD 960,60 per troy ounce. While New York Mercantile Exchange opening gold at bids was at the level $949,00, while closing — $962,75 per troy ounce.

Being alternative for currencies and instrument of hedging against risks, gold gained from record prices increase for import to the USA that gives signals about inflationary risks.

Warnings that Israeli armed forces use Iraqi airspace and American military bases in Iraq to prepare for the probable attack on Iran caused gold prices increase though the representative of Department of Defense of the USA denied this information.

These messages can be called next "excellent" reason for gold purchasing, besides, investors deducted funds from dollar assets that also caused capital inflow to gold market.

Silver futures became more expensive following gold against background of the same factors.

Quotations of September silver futures in accordance with results of bids increased 50 cents (more than 2,7%) — by USD 18,82 per ounce. Silver prices increased more considerably against gold.

Metals of platinum group became more expensive as well. October platinum futures finished the session with increase in USD 48,80 — by USD 2 047,20 per ounce, and September palladium futures became more expensive USD 5,80 — by USD 457,80 per ounce.

Today during morning trade session in Asia gold was traded at the level $953,70 — $970,80 per ounce.

London morning fixing on July 14, amounted to $957,75 per ounce, when rate of the National Bank of Ukraine was set on $949,00 per ounce.

Comments by Roman Valesyuk, Senior Vice-Chairman of the Board of JSCB "PRAVEX-BANK" on precious metals market. July 11, 2008.

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