24.11.2014 - Traders are waiting for outcome of the meeting of OPEC
The price of gold has reached an important the level $ 1200 per troy ounce, after the People's Bank of China for the first time since June 2012 has lowered interest rates, which was caused by the slowdown in the economy. Thus, according to the latest data, China's GDP grew by 7.3%, which was minimal growth over the past 5 years. It is also worth noting that investors fear a rate hike by the Fed, which is expected in September 2015 and will reduce the demand for gold and the US dollar will strengthen. Positive for the quotations of gold was the statistics on the growth of imports of gold in India, which is the second largest consumer of gold in the world. We anticipate continued growth of quotations of gold in the near future and maintain the medium-term positive outlook.
The price of oil continued to rise after a decline in interest rates by the central bank of China to support the economy of the country. Let us recall that China is the world's second largest oil consumer after the United States. The central event of this month will be a meeting of OPEC in Vienna, at which will be decided on oil production quotas. It is worth mentioning that some of the countries like Venezuela and Libya favor reducing quotas in order to maintain the price of oil, but Saudi Arabia and Kuwait announced their intention to keep the volume of production. Today, volatility is low, but increased activity of traders is possible in case of new speculations about the future OPEC decision. We maintain our medium-term negative outlook on oil.