29.09.2014 - The fall of oil and gold has stopped
The price of gold stabilized above 1210 dollars per troy ounce and continues to consolidate around these levels. The reason for the price drop on Friday was the strengthening of the dollar on the background of positive statistics on GDP growth in the United States in the second quarter by 4.6%, which was the highest increase in the last 3 years . According to our estimates, the price of gold may continue to decrease to the levels of 1180-1200 amid weak demand from investment funds. On the other hand, investors expect the activation of buyers in China and India due to the holiday season. Additional stimulus for growth could be significant correction on the stock markets. The main event of the week will be the publication of data on the labor market in the United States on Friday. We expect the resumption of growth and recommend starting to build up positions in the range of 1180-1220 dollars per troy ounce.
The price of Light Sweet crude oil rose slightly, despite the strengthening of the dollar. The main reason for optimism of investors has become the GDP data of the United States, which in the second quarter increased by 4.6%. This fact has improved the expectations of traders for the future growth of oil demand in the United States. At the same time, oil prices remain under pressure of rising oil supplies amid slowing consumption in China and Europe. Iran's proposal on the need to reduce the volume of oil supplies of OPEC to maintain oil prices was not supported by other countries in the organization. We maintain a medium-term negative outlook for oil, but we see a significant decrease in fall potential.