Thursday, September 7 2017 14:41

ArmInfo. Gold prices in international markets will continue to grow in the second half of 2017 due to the further growth of geopolitical tensions and political instability in the United States. This forecast is contained in the review of the precious metals market, contained in the semi-annual report of the  Polymetal International plc Group.

The report notes that during the first half of 2017, gold prices rose by 8% amid fears associated with the policy implemented by the US government, as well as higher interest rates of the FRS and general political uncertainty outside the United States. After an active start in the first quarter, the growth in gold prices slowed in the second quarter, as concerns about the increase in geopolitical tensions gradually decreased.  Global demand for gold declined by 14% in the first half of 2017 to 2.0041 tons compared to the same period last year. Despite the fact that the inflow of funds into the ETF (investment exchange funds) in the first half of 2017 significantly decreased compared to the active demand in the first half of last year, interest in gold among institutional investors remains. The demand for gold from central banks has been growing at a moderate pace. Investing in bars and coins has increased, as has the demand for jewelry, despite the fact that it remains low in the long term. The total supply fell by 5% 1 in the first half due to a sharp decline in gold production in China and Australia. The volume of gold scrap production also declined, triggering a decline in supply. The price of gold at the end of the half-year was US $ 1,242 per ounce, an increase of 8% since the beginning of the year. The average price of LBMA for gold for the period was US $ 1,238 per ounce, an increase of 1% compared to the same period last year. The dynamics of the price of silver generally repeated the dynamics of the price of gold, but with higher volatility: the average price increased by 8% from US $ 15.8 per ounce in the first half of 2016 to US $ 17.2 per ounce in the first half of 2017, with this spot price was US $ 16.5 per ounce as of June 30, 2017, an increase of 1% compared to January 1, 2017.Polymetal - one of the world's largest producers of primary silver, is one of the three leading gold mining companies in Russia. It conducts extraction of precious metals and geological exploration in Russia, Kazakhstan and Armenia.

Polymetal Int independently carries out the whole complex of works on the development of ore deposits - from exploration to operation. The key element of the strategy is the creation of processing centers (hubs), which allow the most effective and responsible use of financial and human resources, contribute to achieving higher returns on invested capital. In November 2011, Polymetal Int.  was the first Russian company to receive a premium listing on the London Stock Exchange (ticker POLY).Recall that the company Polymetal started its activity in Armenia in 2015 with the acquisition of a polymetallic deposit Lichkvaz-Tey in the south, in the Syunik region. The company operates a concentrator in Kapan (Kapan GOK), which has been  acquired in April 2016.