22.09.2014 - The fall of commodity markets is continuing
The price of gold continues to decline and in the near future will probably reach a strong level of $ 1,200 per troy ounce. The reasons for the drop in prices remain the strengthening of the American currency due to the tightening of monetary policy in the United States and risk of decline associated with a referendum on independence in Scotland, where voted to keep a united UK. Growth on the stock markets makes gold less attractive to investors, but demand for the metal increased by Asian consumers, who are starting to buy gold due to low metal prices. Among the factors that may contribute to the increase in gold prices should be noted the tense situation in the east of Ukraine and a possible correction on the stock markets of the world. We expect that the buying will be resumed around the levels of 1180-1200 and forecast the price growth in the medium term.
The price of Light sweet crude oil continues to fall gradually against the dollar strengthening and growth of oil reserves in the United States. Thus, stocks are expected to increase in the coming weeks due to planned servicing the equipment of refineries in the United States before the winter. Despite this demand for oil will increase in the winter. In addition, it is worth noting that OPEC announced the possibility of reducing the level of production to maintain the price of oil, although the volume of production in Libya again fell. We maintain a medium-term negative outlook for oil and recommend holding short positions.