14.10.2016 - We expect a strong movement of gold prices after the current consolidation
The price of gold continues to consolidate around the level of 1260 per troy ounce in anticipation of new drivers for growth. It should be noted that the likelihood of the Fed raising interest rates in December, remained high, but despite this, the fall of the yellow metal quotations stopped. Demand for gold is supported by investors' concerns about the possible fall on the stock markets, as well as the negative expectations regarding the effects of the UK’s exit from the EU. The increased demand for jewelry in India and China that is due to the holiday period, will support the quotation of gold. The dynamics of trading today may greatly impact the US retail sales data (12:30 GMT). According to our forecasts, the potential for the further decline is limited and we expect the resumption of purchases in the near future. Our medium-term outlook is positive.
The price of Light Sweet crude oil resumed growth after the recent correction. The reason for the positive dynamics of prices has become the price correction of the US dollar after its recent rally, as well as the growth of speculative buying on the background of technical factors. It should be noted that the data on the growth in US oil inventories by 4.9 million barrels against an expected growth of only 0.4 million barrels could not affect the mood of investors. Traders evaluated statistics from China, which for the second time this year passed the US in terms of oil imports, but showed a decline in exports, reinforcing fears about the future growth of demand for oil in the country. Our medium-term outlook for oil remains negative and we expect renewed decline in the near future.