05.12.2014 - Traders are waiting for increased volatility today
The price of gold is around the level of $ 1200 per troy ounce. The demand for the yellow metal is supported by investors' concerns about the prospects for further growth of stock markets. Positive statistics on the labor market in the US, where the number of initial claims for unemployment benefits fell by 17 thousand to 297 thousand, could not lead to a drop in prices. Today, the focus will be on GDP growth in the euro area (10:00 GMT) and the report on the labor market in the US in November (13:30 GMT). In the case of positive data, the dollar will continue to strengthen, and the gold will drop. Demand in Asia remained below expectations. We maintain our positive outlook for the medium-term, but assume a drop in prices today.
The price of Light Sweet crude oil continues to fall despite the data on reduction of inventories of oil and oil products in the United States. The reason for the continuation of the downward trend yesterday was the news of the fall in oil prices for the Asian and American consumers from Saudi Arabia. So, in January, the price will be reduced by 1.5-1.9 per barrel for Asian consumers and by 10-90 cents for American consumers. We recall that earlier OPEC decided to keep oil production quotas, and now according to analysts, the market is oversupplied with 1.5-2.0 barrels of oil per day. We expect a further drop in prices in the medium term with the immediate goal of $ 60 per barrel.