FX.co ★ Crude oil and gold market overview

Oil

Oil futures remained almost unchanged on Thursday. 2-day price upturn decelerated due to fuel reserves increase above the average and because of the US stock indexes weakening.
In follow up of the New York Commodity Exchange closing the October futures quotations on sweet crude oil fell by 4 cents or by 0,01% to 72,47 dollars per barrel. Brent oil futures dropped by 12 cents or by 0,2%, to 71,55 dollars per barrel.
This week oil futures were fluctuating between 60 and 70 dollars per barrel for the second time in this month, and the second time the price surge doesn\'t slow the pace almost touching the high of 2009 at 74,37/brl, reached in August.
Earlier, the market was supported by the US currency weakness, shares uptick and reported official data, according to which the US oil reserves reduced more significantly than it was expected. On Thursday, all these three factors were rather mixed, as the dollar weakened against the Euro and the stock indexes jumped to new peaks during the current year.

Nevertheless, the oil price did not manage to move so high as shares or the American currency. Although, the general economic condition seems to be better now, compared to any of this year period, but it\'s different with the supply and demand on oil. The winter is coming and residual fuel oil is the most popular among all petroleum products. In the USA the distillate oil reserves, including residual fuel oil and diesel fuel, are at the highest level since early 1980, and the consumption reduced by 6,8% for 4 weeks, which ended on September 11. Such data was released by the US Energy Department.

Gold

Gold futures decreased on Thursday, as the trade participants were fixing the profit amid their confident growth lately. Nevertheless, this oil product price closed at 1000 dollars per ounce.
According to COMEX trading results, the December gold futures quotations ticked down by 6,70 dollars to 1013,50 dollars/ounce.

Some market participants begin to worry when the gold price moves higher significantly. If the metal is sold intensively, the first support is expected around 1006 dollars per ounce, but this level may turn out to be not so strong. After that there are few chances to hold the prices within 4-figures range.

The greenback strengthening also influenced the yellow metal negatively. The gold is often bought by the inverse relation to the dollar rate for the American currency risk hedging, and it also used as an alternative currency.

Regards,

Analyst: Vladimir Donin