26.11.2014 - Investors have less faith in reduction of quotas for oil production in OPEC countries

The price of gold continues to consolidate near the level of $ 1200 per troy ounce, after it tried to resume the downward movement after the publication of strong data on US GDP growth. According to preliminary data, the world's largest economy grew in Q3 by 3.9% against the expected growth of 3.3%. Despite this, the price of gold was able to compensate the losses after the release of statistics on consumer confidence index from the Conference Board, which fell to 88.7 against 95.9 anticipated. Investors are waiting for the outcome of the referendum in Switzerland on the ban of gold sales by the central bank and the obligation to increase the gold reserves in the country to 20%, compared to 8% in October. Further growth of quotations is limited by an increase of stock indexes. We maintain our medium-term positive outlook.

The price of oil has fallen sharply as a result of a meeting of representatives of Saudi Arabia, Venezuela, Mexico and Russia in Vienna which have agreed to consult each quarter. Analysts had expected statements of Russian representatives about the readiness to reduce the volume of production in case of a similar move by the OPEC, but according to Russian representatives, production volumes will remain at the same level. At the moment, investors are waiting for the outcome the meeting of OPEC, which will be held tomorrow in Vienna. We predict that the quota will not be lowered, which will result in a further reduction of prices. Our medium-term view on oil remains negative and we assume the possibility of a drop in prices to a level of $ 60 per barrel.

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