30.10.2015 - Commodities continue to decline

The price of gold continued to decline, despite a weak preliminary statistics on the growth of US GDP, which increased by 1.5%, which was 0.1% below the forecast. In the second quarter, the US economy grew by 3.9%. Reduced inventory took away 1.44% from the growth of GDP, but sales rose by 3.0%, indicating the growth in consumption. Today, the dynamics of trading will be affected by the data on personal income and consumer spending in the US (12:30 GMT). Rising probability of the Fed's interest rates increase has negative impact on the gold price, but on the other hand, demand for the metal is supported by the festive season in India and China, where increased sales of jewelry. We expect the resumption of growth in the near future.

The price of Light Sweet crude oil continued to consolidate around the level of 46.00 after rising volatility caused by statistics on US GDP growth, which totaled only 1.5% vs. expected 1.6% in the third quarter. Growth of price is still limited by the excess of oil supply on the market and an increase in US inventories. Despite this fact investors have been pleased by the increase in capacity utilization at US refineries to 87.6% versus 86.4% previously, which will lead to growth in demand for oil. Considering these factors, we expect the fall in oil prices in the medium term and expect a new signal for opening short positions.

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