19.10.2016 - The data on US oil inventories will lead to a strong movement
The price of gold continued to consolidate after in the United States and was published statistics on the consumer price index, which increased by 0.3% in September, as expected, but core consumer price index, which excludes food and energy rose by 0.1% , which is 0.1% worse than the forecast. Despite this, the likelihood of the Fed raising interest rates in December, remains high. Today, the focus will be the news on the housing market in the US (12:30 GMT), and tomorrow we should pay attention to the decision of the ECB on monetary policy. Demand for gold is growing in India and China in the 4th quarter against the background of the holiday period, which, together with the expected fall in the stock markets will support prices for the yellow metal. Our medium-term outlook remains negative.
The price of Light Sweet crude oil stopped growing against the background of the lack of incentives for continued upward momentum. The positive effect on the decision of OPEC will be the reduction of oil production to 32,50-33,00 million barrels per day compared to 33.39 million barrels a day in September exhausted its positive effect. In addition, investors are skeptical about the possibility of execution of the agreement. Today, the price dynamics will affect the data on oil reserves in the US (14:30 GMT). The slowing of China's industrial output growth to 6.1% in the country, which is 0.3% worse than the forecast, could not greatly affect the dynamics. We expect a strong price movement after the current consolidation is expected to fall in the coming months.