18.11.2014 - Volatility on the commodity markets remains minimal
The price of gold yesterday remained practically unchanged and traders expect the new signals. It is worth noting that at the moment the price of gold was fixed above the important level of 1180, which has led to the closure of a large number of short positions. Despite the current rise, further growth will depend on the situation on the stock markets, the correction of which will lead to increased demand for defensive assets, besides the growth of purchases can be triggered by the worsening of geopolitical situation. Gold demand from Asian consumers this year is weaker than in previous periods. In this regard, we maintain a medium-term negative outlook, but there is a decrease of growth potential.
The price of Light Sweet crude oil is consolidating near the level of 76 dollars per barrel. Negative data on reduction of Japan's GDP by 0.4% in Q3, against the previous period help to reduce oil prices. It is worth noting that the main event of this month will be a meeting of OPEC on November 27 at which may decide to reduce quotas on oil exports. This week the central event will be the publication of minutes of the previous meeting of the Federal Open Market Committee of the Federal Reserve . Investors are closely watching the data on oil reserves, which are steadily growing. We expect a further decline of quotations against the background of weak demand in Asia and Europe and the growth of production in the United States. Our medium-term view remains negative.