25.11.2015 - The price of raw commodities has increased due to rising tensions in the Middle East
The price of gold yesterday showed a slight increase after a Turkish fighter jet shot down a Russian military plane near the Turkish-Syrian border, which increased geopolitical tensions and has led to an increased demand from gold. In addition, support for a gold in due to the rise in jewelry consumption in China and India due to the holiday season. The main factor that will continue to put pressure on investor sentiment is the expected increase in interest rates of the Fed will support the dollar and will lead to a drop in the attractiveness of gold compared to instruments with interest income. We expect the price decline in the near future.
The price of Light Sweet crude oil showed growth yesterday after news of downed in the Middle East Russian military aircraft, which increased tension in the region. It is worth mentioning that the region for last year produced about 35% of all oil in the world and rising tensions threaten disruption of oil supply on the world market. The impact of this factor is temporary, but such a situation may lead to increased volatility in the case of repetition. Today, the dynamics of trading will be affected by the data on oil inventories in the US (15:30 GMT), but tomorrow will decrease in activity due to the Thanksgiving Day holiday in the United States. We maintain a negative medium-term outlook for oil.