19.11.2014 - Oil is likely to renew the minimums
The price of gold continues to increase gradually against the background of the statements of the ECB officials regarding the fact that the regulator may purchase assets including government bonds, ETF and gold, to deal with low inflation. Despite this demand for gold from investment funds remains low, but the fall in equity markets may lead to a surge of interest in the metal. Consumption of gold in Asia remained at lower levels than previously expected. Today is projected the increase of volatility after the publication of the statistics on new home sales in the US (13:30 GMT) and the publication of minutes of the previous meeting of the Fed (19:00 GMT). We maintain a positive outlook for the medium-term with the closest targets near 1220 and 1230 dollars per troy ounce.
The price of Light Sweet crude oil continued to decline reached lows around 74.00 dollars per barrel. The reason for the lower prices is speculation on the future of the OPEC meeting on November 27 at which may decide to reduce oil production quotas. Saudi Arabia and Kuwait stand for the preservation of current volumes, but Libya, Venezuela and Ecuador supported the idea of reducing the quota to maintain oil prices. Statistics for reducing Japan's GDP by 1.6% in the third quarter compared with the same period of the last year also increased the pressure on oil prices. Today we should pay particular attention to data on oil reserves in the US (15:30 GMT). We maintain a medium-term negative outlook due to weak demand and increased supply.