03.09.2014 - Strong dollar puts pressure on commodities
The price of gold has fallen sharply against the strengthening of the dollar index to a maximum value since July of 2013. The reason for the strengthening of the American currency became expectations of launching additional measures to deal with low inflation in the euro area, as well as the fall of the British pound in relation to possible exit of Scotland from the United Kingdom after the a referendum on the independence of the country on 18 September. Demand for gold remains low, but may increase due to the wedding season in India. Demand for the metal is also supported by the tense geopolitical situation caused by the events in Ukraine. We maintain our positive medium-term outlook for gold, but admit the possibility of further price drops in the near future.
The price of oil resumed its decline due to the strengthening of the dollar, the end of traveling season in the United States, as well as weak data on manufacturing activity in China and the eurozone. In addition, it is worth noting that in Libya continues the increase of oil production, and demand in Europe remains relatively weak. Traders continue to monitor the situation in Ukraine, which may lead to interruptions in the supply of gas to Europe. Tomorrow the course of trading will be affected by data on oil and petroleum products in the United States, and statistics on the labor market in the United States. We maintain a medium-term negative outlook for oil.