01.12.2014 - Swiss referendum resulted in the fall in prices for gold
The price of gold fell sharply today in connection with the results of the referendum in Switzerland, where the electorate voted against the increase of the part of gold reserves of the central bank of the country up to 20% versus the current value of 8%. Also, there was no support for a proposal to ban the sale of gold by the central bank. The result of the vote was expected and a drop in prices was limited. It should be noted that the production cost of gold is about $ 1100 per troy ounce. We expect the price correction in the near future and recommend to accumulate positions in gold. Our medium-term outlook remains positive.
The price of Light Sweet crude oil continues to drop after on Thursday in Vienna, OPEC countries decided to maintain the quota of oil production at 30 million barrels per day. Today, a negative factor for the dynamics of prices was the news about reducing China's PMI of 0.2 to 50.3. Given the weak demand in Europe and Asia, the growth of production in the US, easing of sanctions against Iran, we see an imbalance of supply and demand on the market, which will lead to a further decline in prices. Purchases may be resumed near the level of 60 dollars per barrel. We see no reason to change the negative trend and maintain the medium-term negative outlook.