11.10.2016 - The price of gold has stabilized and investors may resume buying

The price of gold has stabilized near the level of 1260 dollars per troy ounce, despite the US dollar's rise against the backdrop of increasing the likelihood of the Fed raising interest rates in December. Such a move by the US regulator will reduce the attractiveness of gold as compared with other assets that generate interest income and will strengthen the US dollar. It is worth noting that in the 4th quarter, the demand for jewelry in India and China is growing, but this trend weakened in recent years. According to our estimates, the probability of the fall on the stock markets has increased significantly and in the coming months we can see a significant increase in the demand for defensive assets. Our medium-term outlook remains positive, and we expect the resumption of purchases in the near future.

The price of Light Sweet crude oil has shown growth on the news from an energy conference in Istanbul, where the Russian president said about the country's readiness to join in efforts to reduce the volume of oil production to increase oil prices. It should be noted that this step will support the American oil producers and will help them increase production, and partially offset the reduced production in OPEC and Russia. It should be noted that we are still skeptical about the feasibility of the plan. The focus this week will be on the US data on oil stocks that declined over the past weeks. Our medium-term outlook remains negative and we look forward to the resumption of the negative dynamics in the near future.

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