The price of gold has shown correction after have been published labor market data in the United States, according to which the unemployment rate rose by 0.1% to 5.0%, while the number of jobs outside the agricultural sector increased by 156 thousand vs. expected 171 thousand. Support for gold was also a sharp drop in the British pound on Friday morning. Today, in the US and Japan is a holiday and activity will be reduced. On the other hand, the return of Chinese traders after the weekend last week has led to the buying of physical gold. The demand for jewelry in Asia traditionally grows in 4th quarter due to the holiday season. Our medium-term outlook remains positive, but after the current correction, we can see the resumption of a negative price dynamics.
The price of Light Sweet crude oil showed correction on the background of fixing positions after strong growth last week. It is worth noting that the number of active oil drilling rigs in the US rose by 3 to 428, and this trend is likely to continue against the backdrop of the recent OPEC agreement to reduce oil production of countries by 32,50-33,00 million barrels of oil per day. Investors are waiting for the news from an energy conference in Istanbul that takes place on October 9-13. According to our estimates, the achievement of a final agreement between the members on the official OPEC meeting in Vienna on November 30 is unlikely. At the same time, the decline in oil production in OPEC will stimulate further growth in US drilling activity. Our medium-term outlook remains negative.