13.10.2014 - Investor's interest in gold is gradually increasing
The price of gold continues to rise gradually amid growing fears of investors about the negative impact of global economic slowdown on American companies. In addition, the demand for gold has been supported due to the weakening the US dollar and rising consumption in China and India on the background of the holiday season in these countries. Protests continue in Hong Kong, that on one hand reduced sales in the Hong Kong, but on the other hand increased the demand for defensive assets. We expect low volatility. Our medium-term outlook remains positive in connection with the expectation of falling stock markets.
The price of oil after the sharp decline last week and the correction in the last trading session is continuing to decline. The reasons for the decrease are still strengthening of the dollar, reducing the outlook for global GDP growth and oil consumption, respectively, and an increase in supply on the market amid weakening demand. The current negative trend may change in the case of a decision to reduce OPEC quotas for the supply of oil on the world markets. Growth in demand is also expected in winter in connection with the cold spell in the United States, where last year was abnormally cold winter, which resulted to an increase in demand for oil. We maintain a medium-term negative outlook and lower the objective to $ 80 per barrel of Light Sweet crude oil.