10.09.2014 - Oil and gold keep negative trend
The price of gold continues to fall against the strengthening of the US dollar, which is associated with the end of quantitative easing in the United States and the possibility of an earlier rise in interest rates, which will reduce inflationary expectations and, accordingly, the demand for gold and the dollar will strengthen. In addition, the demand for gold decreased in connection with agreements on a ceasefire in the east of Ukraine. At the same time, the correction on the stock market may lead to increased interest in gold. We expect a further decline of gold, but we expect the resumption of growth in the medium term.
The price of Light Sweet crude oil continues to fall in price due to the strengthening of the dollar, the increase in oil production in Libya, the completion of the driving season in the United States and the continued growth in oil production in the United States, which was made possible by the new technologies of horizontal drilling and hydraulic fracturing. Oil demand in Europe remains weak, and the imbalances of supply and demand are increasing. Today the course of trading will be affected by data on oil reserves in the United States (14:30 GMT). We maintain a medium-term negative outlook on oil, but the potential of falling declined.