26.10.2015 - The price of commodities is gradually reduced
The price of gold corrected after strong growth on a stronger US dollar after the speech of the ECB President in which he said on the revision of the parameters of monetary policy at the next meeting of the ECB in early December. In addition, the PBOC lowered the interest rates by 0.25% - up to 4.60% for the loans and 1.50% on deposits. The dynamics of the gold price in the near future will be influenced by speculation about the rhetoric of the Fed on monetary policy, which will be issued on Wednesday. Strong influence on the course of trading this week will also have data on the growth of US GDP in the third quarter. Today, it is worth paying attention to statistics on new home sales in the US (14:00 GMT), which may lead to a drop in the price of gold. Price volatility this week will be increased due to the large number of important events.
The price of Light Sweet crude oil continues to decline gradually under the pressure of oversupply on the oil market. Lower interest rates by the National Bank of China 0.25% failed to change the negative sentiment on the market. Reduced forecasts for growth in oil consumption in the world in 2016 and saving of oversupply remains a major reason for the fall. The imbalance on the market may increase in case of additional 500 thousand barrels of oil from Iran after lifting of sanctions. This week, we expect a strong increase in volatility and special attention should be paid to the data on oil inventories and growth of US GDP in the third quarter.