02.09.2014 - Strengthening of the dollar had a negative impact on the price of gold

The price of gold started to decline against the strengthening of the dollar, despite the day off yesterday. Investors are awaiting the publication of data on the labor market in the United States. In case of positive employment report will increase the possibility of a quicker raise of interest rates by the ECB. At the same time, it is worth noting that traders are closely watching the situation in Ukraine and the NATO summit on September 4-5, can increase the growth of tension in the world, causing an increased demand for defensive assets like gold. Today we expect a low volatility and continued downward movement of the price of gold. The medium-term outlook remains positive.

Price for the American Light Sweet crude oil has stabilized after rising. Trading volumes decreased due to a holiday in the United States. Weak data on industry in China disappointed investors. We recall that China is the world's second largest oil consumer after the United States. Oil production in Libya has continued to grow and reached 700 thousand barrels per day, which is almost 2 times less than last year. At the same time, OPEC countries may reduce oil production to maintain price stability due to increased supply on the market. Investors are waiting for the result of the ECB meeting on Thursday and data on the labor market in the United States on Friday. We admit the possibility of further growth in the near future, but the medium-term outlook remains negative.

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