The price of gold continues to rise due to a slight weakening of the dollar and the fall on global stock markets. During strong downward movements on the market investors prefer to switch to less risky assets. Despite this the world's largest reserves of investment fund secured with gold SPDR Gold Trust fell on Friday by 2.64 tons to 759.44 tons, which is the lowest since December 2008. In connection with the expectation of rising demand in India and China for the holiday season, and given the drop on the stock markets, which according to our forecasts will continue, we recommend holding long positions in gold and maintain a medium-term positive outlook.
Oil continues to trade at low levels due to the statement that Kuwait and Saudi Arabia are ready to lower oil prices, which will help to deal with competitors. Experts predict that the quotes may fall to the level of 76-77 dollars per barrel of Brent crude oil that is the cost of oil production in the United States and Russia. Some support for the quotations yesterday was provided by the news of import growth in China by 9.5%. Despite the fact that oil demand in Europe and Asia remains weak against the background of further growth in supply leads to a fall in prices. We recommend holding short positions in the oil and maintain a medium-term negative outlook.