11.12.2015 - The price of gold stabilized before the Fed meeting
The price of gold is consolidating near the levels of 1065-1080 dollars per troy ounce in anticipation of the Fed's decision on interest rates, increasing of which is already partially taken into account in the price. Reduced oil prices increases the risks of deflation, which also puts pressure on quotations of the metal. Demand in China remains strong due to the holiday season in the country, which will continue until early February next year. Volatility in the next week will increase greatly after the Fed statement. Investors will be looking for the signals on a possible increase in interest rates of the Fed in March 2016. We are waiting for a signal to open new positions.
The price of futures for Light Sweet crude oil is consolidated around the level of 38 dollars per barrel. The recent fall in prices is caused by the lack of decision of OPEC on quotas of oil production due to disagreements between Saudi Arabia and Iran. The decision on the quotas will be taken after the sanctions against Iran will be lifted and the country will increase the supply of oil on the market, which will worsen the imbalance of supply and demand of oil. We see no reason to change the negative trend, but do not exclude the correction of prices in the near future.