10.10.2014 - Oil accelerated the decline
The price of gold continued to rise due to the fall on the stock markets, after reassessment by investors of minutes of meetings of the Fed. Thus, investors negatively perceived thoughts about the negative impact of the dollar on US economic growth and position of American goods on the world and domestic market. In addition, the demand for gold as a defensive asset stimulated reduction forecasts for growth in world GDP. Today and on Monday we expect the low volatility in gold prices. Our medium-term outlook remains positive due to expectations of lower demand for risky assets on the world markets.
The price of Light Sweet crude oil has accelerated the decline on concerns about the global economy, as well as the risk of falling demand in the world. Oil consumption remains at low levels on a background of growth in supply due to the maximum levels of oil production since 1986 in the United States, increased supply from Libya and the expected easing of sanctions against Iran. Traders expect the meeting of OPEC in November, which may decide to reduce supply on the world markets in order to maintain the price of oil. It should be noted that the demand for oil and rising inventories now caused by technical maintenance of refineries before the winter and the demand will increase in the coming months. We maintain a medium-term negative outlook for oil and recommend holding short positions.