The price of gold continues to rise and reached the level of $ 1,250 per troy ounce. The reason for the upward movement was a decline of the dollar on weak retail sales, which fell by 0.3% in September against the expected growth of 0.1%. At the same time, demand for gold is supported by the fall on the stock markets, which increases the demand for safety assets like gold. Gold imports in India rose by almost 2 times, to 3.75 billion dollars due to the holidays and the season of weddings. Gold consumption in China also traditionally grows at the end of the year. Taking into account the expectation of a further decline on the global stock markets, we recommend holding long positions in gold with the objectives of 1265, 1290 and 1330.
Drop in oil prices continues despite the weakening dollar. The reason for the price drop remains weak outlook for global GDP growth and oil consumption in the world. In addition, oil production in the United States is at its highest level since 1986, and OPEC is not going to reduce production quotas, which is at the highest level in 2 years - about 31 million barrels per day. Easing of sanctions against Iran will lead to further growth in supply on the market. Despite the current negative trend, the growth potential is limited due to the coming of quotations to the cost level of oil production. Today we should pay attention to the data on oil reserves in the United States (15:00 GMT). We recommend holding short positions and maintain a medium-term negative outlook for oil.