05.11.2014 - The price of oil in the United States reached a three-year low
The gold price decline resumed after some consolidation near the level of 1160 dollars per troy ounce. Currently quotations reached the level of 1150 due to lower growth оn reducing risks associated with weak growth in Japan, which the Bank of Japan decided to stimulate by the increase of the volume of purchases of government securities to 80 trillion yen. It is worth noting the growth stop of the American stock market near historic highs that may indicate a change in the upward trend to the negative, that traditionally raises the cost of gold. An important factor that limits the fall of gold is approaching its price to an average production cost of about $ 1100 per troy ounce. We recommend to wait for a signal to buy gold and save the medium-term positive outlook.
The price of Light Sweet crude oil fell yesterday to a three-year low due to a number of negative factors. Thus, Saudi Arabia announced price cuts for the American and Asian customers, while at the same time, the European Commission lowered its GDP growth forecast for the euro area to 0.8% in 2014, which is 0.4% less than the previous forecast, and to 1.1% in 2015 year versus 1.7% previously. The main reason for the drop in oil prices remains rising supply of oil against the weak demand, especially in Europe. Today the course of trading will be affected by the data on oil and petroleum products in the US (15:30 GMT). We recommend to fix some positions near the level of 75,00-76,00 per barrel and maintain a medium-term negative outlook.