07.11.2014 - Volatility on commodity markets today will grow
The price of gold continued to decline against the strengthening of the US dollar after the publication of positive data on the US labor market, where the number of initial jobless claims fell by 10 thousand to the level of 278 thousand. It is worth noting that investors are in no hurry to build up positions ahead of today's publication of data on unemployment in the United States (13:30 GMT). In case of positive statistics, the prices will continue to fall to around $ 1100 per troy ounce. The purchases of gold will resume above the level of cost of gold production near $ 1100 an ounce. We expect the resumption of growth in the medium term.
The price of Light sweet crude oil continued to decline despite the positive data on the US labor market. The reason for the fall was the strengthening of the dollar, as well as a statement regarding the reduction of OPEC oil production forecast until 2017 by 1.8 million barrels to 28.2 million barrels which is 0.7 million barrels less than in the previous forecast. Stopping of the capacities in Libya has led to the slowdown in the fall of oil in Europe. We maintain a medium-term negative outlook for oil and expect increased volatility today after the publication of data on the US labor market.