03.12.2014 - Gold continues to grow

The price of gold corrected yesterday against the dollar strengthening after the statements by the US Federal Reserve. So, William Dudley said Fed rate hike is likely next summer, which will lead to a decrease in demand for gold. According to our estimates, this factor has already been included in the prices. It is worth noting that the demand in China remains weaker than last year. Support for the metal was the news on the easing of restrictions on gold imports in India. Increased volatility in gold prices is expected on Friday after data on the US labor market. We maintain our medium-term positive outlook for gold due to the unstable situation on the stock markets.

The price of oil after the upward correction will continue to fall against the decision of OPEC to leave production quotas unchanged at 30 million barrels a day. The next meeting of OPEC will be held in the summer of 2015. Today, the course of trading will be affected by the data on oil reserves in the US (15:30 GMT). Last month, the number of applications for new wells in shale deposits in the United States decreased by 15%, indicating a decrease in potential of drop in oil prices. Despite this, we expect a continuation of the current dynamics and recommend holding short positions on oil futures.

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