The price of gold continued to decline, and came close to six-year low. The main reason for the fall of price remain expectations of US interest rate increase, which will strengthen the dollar and is negatively displayed on the attractiveness of gold relative to other assets which provide interest income. According to analysts, demand for gold in India this year will be a minimum of 8 years due to the low income of farmers in India. At the same time, the demand for gold in China continues to rise against the background of the festive season, which will last until February, when they celebrate the New Year in the country. In the coming weeks the price decline may continue.
The price of Light Sweet crude oil continued to fall against the background of a stronger US dollar. The main factors that put pressure on quotes are oversupply of oil on the market from 0.7 to 2.5 million barrels per day, as well as approaching of oil to its highest levels in nearly 80 years. The main event of this week will be a meeting of OPEC in Vienna on 4 December. We expect that oil production quotas will remain at the same level, and the countries of the cartel will continue to fight for market share. Our medium-term outlook remains negative and we look forward to strong growth volatility at the end of the week.