01.10.2015 - Gold falls amid rising confidence in the Fed's monetary tightening this year
The price of gold continued its negative trend yesterday against the strengthening of the US dollar and rising investor confidence in the Fed's interest rate hike this year after the publication of strong statistics from ADP. Thus, the number of jobs in the private sector rose by 200 thousand in September against 186 thousand in August. Investors are waiting for the more important report on the US labor market on Friday. It is worth noting that the US regulator will pay attention to two main factors in the decision on raising interest rates - the situation on the labor market and inflation in the country. Despite the current decline in the coming months support for gold will be the jewelry consumption growth in China and India due to the holiday season. We expect that increased volatility and falling of price tomorrow is likely to continue to 1100 dollars per troy ounce.
The price of Light Sweet crude oil showed a slight increase, in spite of the statistics on the growth of oil and petroleum products inventories in the United States. Thus, oil reserves rose by 4.0 million barrels last week. Analysts expected a decrease of 0.5 million barrels per day. Today, the support for the oil has become more positive data on manufacturing PMI in China, which rose in September to 49.8 that is 0.1 better than expected and the previous figure. Current growth is likely to end in the near future due to the saving the excess supply on the market in spite of the decline in production in the United States. Our medium-term outlook remains negative.