26.09.2014 - The fall of gold has stopped
The price of gold rose yesterday in connection with the fall of the stock markets in the USA. The reason for the deterioration in investor sentiment was the data on reduction the service PMI to the level of 58.5 compared with an expected 59.4. Dollar weakened slightly, but remains at a high level. Investors were also disappointed with data from China, where the index of leading economic indicators in August was 0.7%, compared to 1.2% in July. Investors are expecting the increase of the demand before the holiday season in India and China. Today, the dynamics of prices will depend on the GDP data for the United States in the second quarter (12:30 GMT) and consumer confidence (13:55 GMT). We maintain our positive medium-term outlook for gold, but admit the possibility of reducing the price to the levels of 1180-1200.
The price of Light Sweet crude oil rose amid continued military actions against militants of ISIS. Despite this on the market remain a number of factors that contribute to the further decline in oil prices, and quotes supported by only the reduction of oil supplies from Saudi Arabia, the reduction of oil inventories in the United States and geopolitical tensions. The main factors that put pressure on the price of oil remain weak demand in Europe and a slowdown in the industry in China. Besides oil supplies from Libya are rising and oil production in the United States is at record levels and continues to rise. We maintain a medium-term negative outlook, but are concerned about the possibility of a sharp rise in prices in case of the new geopolitical problems and decisions of OPEC to cut oil supplies.