20.10.2014 - Growth of gold has stopped
The price of gold after reaching an important level of 1244 dollars per troy ounce stopped growing and now is consolidating within a narrow corridor. Positive data on the housing market in the United States, where the number of housing starts rose to 1.02 million, did not strongly influenced the dynamics of the price of gold. Gold demand from investment funds is gradually increasing due to the reduction on global stock markets, as well as in connection with an increase in investors' concerns about the growth of the world economy, the forecasts of decrease of which is gradually reduced. Jewelry consumption in China and India traditionally grows in China and India due to the holidays and the season of weddings. We maintain our positive a medium-term outlook for gold and recommend holding long positions.
Oil price corrected on Friday in connection with the closing of short positions ahead of the weekend due to the need for correction after reaching the psychologically important mark of $ 80 per barrel of oil Light Sweet. On the one hand, investors are positive about the improvement on the labor market, and the growth in the housing market of the country, but on the other hand, the production of oil in the world is steadily growing in the United States and the countries of OPEC are not going to review the amount of production to raise the price. Demand from European and Asian consumers remains weak. We maintain a medium-term negative outlook for oil, but note little downside potential in connection with approaching quotations to the cost of production of oil in some countries.