03.10.2014 - Oil continues to fall rapidly
The price of gold continues to consolidate around the level of 1210 dollars per troy ounce. Investors are in no hurry to accumulate positions before the publication of data on the labor market in the United States (12:30 GMT). These statistics can lead to the strengthening of the dollar, and therefore weaken the position of gold. Demand for gold is supported by the protests in Hong Kong, the activation of pro-Russian forces in eastern Ukraine and the fall on the stock markets around the world. Demand for gold according to analysts will grow due to Indian and Chinese consumers because of the holiday season in these countries. We maintain our positive outlook for the medium-term, but admit the possibility of falling prices to the level of 1180-1200 dollars per troy ounce.
The price of Light Sweet Crude Oil yesterday for the first time in 17 months fell below $ 90 per barrel. Investors decided not to accumulate positions before the release of data on the labor market in the United States. It is worth noting that Saudi Arabia has lowered the official prices for Asian consumers and announced its readiness to compete for the Asian market. Oil prices are still under the pressure of weak demand for oil in Europe and Asia. Dynamics of prices may change in case of quota reduction in oil production by OPEC. We maintain a medium-term negative outlook for oil.