24.11.2015 - The fall of oil prices has stopped
The price of gold continues to show a negative trend following the other commodities. The main reasons for the fall of gold is expected raising interest rates by the Fed in December, leading to an increase in the dollar and reduction of the attractiveness of investing in gold, compared with instruments that give interest income. Today is forecasted the rise in volatility after the publication of statistics on US GDP growth in Q3 (13:30 GMT). Improving this indicator will lead to a further drop in prices. Demand for gold in China will support the quotation in the coming months. We expect the price decline in the near future.
The price of Light Sweet crude oil showed a sharp rise after the news appeared on the market about the readiness of Saudi Arabia to cooperate with countries outside the OPEC to stabilize oil prices. It is worth noting that the cartel meeting will be held on December 4 in Vienna, and we do not expect changes in OPEC rhetoric. The excess of supply of oil is maintained and will grow in the coming months in case of lifting of sanctions against Iran. Tomorrow a strong influence on the course of trading will have data on oil inventories in the United States. Our medium-term outlook remains negative and we recommend holding short positions.