06.11.2015 - Gold came close to an important level of $ 1,100 per troy ounce
The price of gold ceased to decline after a sharp fall of the previous days caused by an increase in investors' confidence in raising US interest rates after a meeting of the Federal Open Market Committee in December. This fact will reduce the attractiveness of gold compared to fixed income. In addition, among the factors that can lead to price correction in the near future we should note approaching the price to the important support level at $ 1,100 per troy ounce. Today, the price dynamics will be affected by the news on the labor market in the US (13:30 GMT), which can strengthen the dollar and lead to a further fall in the price of gold. We expect falling prices and high volatility today, but do not rule out an upward correction.
The price of Light Sweet crude oil continues to decline amid rising US oil inventories. Strikes on oil rigs in Brazil and the forecast of decline in oil production in the United States to 8.6 million barrels per day during the second half of 2016, cannot compensate the negative from the excess of supply of oil on the market and the expected increase in supply from Iran by 500-700 thousand barrels per day after the abolition sanctions on oil exports. Today, the growth of activity in the market is projected after a report on the labor market in the US (13:30 GMT), an improvement of which on the one hand will strengthen the dollar, but on the other will raise the forecast of oil consumption. Our medium-term outlook remains negative with the objectives near $ 40 a barrel.