27.11.2015 - The price of commodities show low volatility
The price of gold showed low volatility due to the holiday in the US on Thursday and a shorter working day on Friday, which is associated with the celebration of Thanksgiving. It is worth noting that the price of gold continues to be negatively affected by expectations of investors about the Fed raising interest rates, which leads to a decrease in interest in gold compared with tools such as bonds. Gold demand in India fell this year due to the drop in farmers' incomes. Increased consumption of jewelry in China will boost demand for gold. We expect a drop in prices of gold in the near future.
The price of Light Sweet crude oil continues to consolidate despite the recent deterioration of the situation in the Middle East and news on the growth in US oil inventories last week by 1.0 million barrels compared with an expected 1.2 million barrels per day. It should be noted that an excess of oil on the market according to various estimates is about 0.7-2.5 million barrels per day and the expected increase in the supply of oil from Iran to 2.0 million barrels per day, compared to the current quota of about 1.0 million barrels will lead to deterioration of imbalance. The market is waiting for the OPEC meeting in Vienna on 4 December and in case of the saving policy settings of the cartel unchanged, the fall oil will continue. Our medium-term outlook remains negative.