FX.co ★ Oil and Gold review

Oil

Crude oil futures rose on Monday following the stock indexes. Thus, considerable strengthening of the American stock indexes eased concerns for a while regarding growing oil and fuel reserves.

According to the trading results of the New York Commodity Exchange, the November sweet crude oil futures ticked up by 82 cents or by 1,2% to 66,84 dollars per barrel. Brent oil futures price jumped by 43 cents or by 0,7% to 65,54 dollars per barrel.

The oil prices climbed when the US stock indexes started the trade in a positive territory, recovering the interrelation, which has been unstable for about a couple of weeks.

The oil futures has been fluctuating around 70 dollars/brl for several months already, while the traders are waiting for the global economy to use surplus oil and fuel inventories accumulated during the downturn. The reserves contraction is slower than it was expected. This promtes corrections from time to time, similar to that was seen in the last week when the oil price fell by 8% amid unexpected growth of crude oil inventories in the USA.

The oil market participants also keep watch over the actions of Iran waiting for «G6» negotiations which are due on Thursday in Geneva. On Monday, Iran tested the long-range rocket able to reach Israel. The USA and its confederates stand for new sanctions introduction after the information emerged last week concerning the establishment of the second uranium enrichment plant in Iran, raising concerns about that Teheran is to develop the nuclear weapon.

Gold

Gold futures quotations showed a small upturn on Monday with the support from other raw goods and stock indexes prices, however, the market trading volume was low.

December Gold futures in followup of COMEX trading up by 2,50 dollars to 994,10 dollars per ounce.

The deals were rather calm and low-key due to Iom-Kipur holiday. The Gold was supported by purchases amid the stock indexes uprise, as well as purchases of other raw goods after the copper price surge from the minimums. The yellow metal was also backed up by the oil price tick up.

Regards,

Analyst: Vladimir Donin