09.10.2014 - Crude oil inventories rose more than expected
The price of gold continued to rise on a weaker dollar after the publication of minutes of the previous meeting of the Fed. Thus, in the document, was noted that a strong dollar may have a negative impact on American manufacturers. In addition, the approximate date of rate hikes has been moved from July to August 2015. Demand for gold was also supported by purchases in China, where trading resumed after the holidays. Interest in gold in India and China is still lower than in the previous year, but can grow due to the holidays. In case of decrease on the stock markets, we can see an increase in investor interest in gold. We maintain our positive medium-term outlook for gold and recommend holding long positions.
The price of Light Sweet crude oil remained at around $ 87 per barrel. Despite the Fed minutes and the weakening of the dollar, the quotations did not correct upwards due to the sharp rise in oil inventories in the United States. Thus, analysts had expected growth of oil reserves by 2.1 million barrels, but the reserves increased by 5.0 million. In addition, oil is under the pressure of oversupply and weak demand in Europe and Asia. In case of easing sanctions against Iran, the supply of oil will increase again. At the moment, there is no reason to change the trend and quotations of oil are expected the decline in the medium term.