02.12.2015 - Commodities’ prices have stabilized
The price of gold stabilized after falling by 7% in the previous month. The decrease was due to expectations of rising interest rates after the Fed's meeting on 15-16 December, which will be negatively displayed on the price of the metal. At the same time it is worth noting that the demand for gold coins in the United States increased by 3 times in November against October values. Extra charges for gold in China are at the level of 5-6 dollars per troy ounce. This fact points to the growth in demand in China due to seasonal factors as jewelry consumption in the country is growing due to the holiday season that will continue until the Chinese New Year on February 8. Falling prices may continue in the near future, but its potential is limited.
The price of Light Sweet crude oil does not show some movement and is about the level of 42 dollars per barrel. The strengthening of the US dollar against the background of a possible fall in interest rates of the Fed may lead to a continuation of the negative dynamics of prices to levels 38 and 35 dollars per barrel of oil. Today, the dynamics of trading will be affected by the news on oil reserves in the US (15:30 GMT), which are located near the highest level in 80 years. The main event of the week will be a meeting of OPEC on Friday, which according to our forecast will leave the quotas at 30 million barrels a day, but the rhetoric of representatives of the cartel may affect investors’ sentiment. Our medium-term outlook remains negative.