Crude oil.
Crude oil futures quotations dropped to 1-week low on Friday after it was known about unemployment growth in the USA to the highest level for 26 years in October. The last data did not justify the previous expectation that incipient economic recovery stimulates the weak oil demand.
According to the trading results at the New York Commodity Exchange the December sweet crude oil futures ticked down by 2.19 USD or by 2.8% to 77.43 USD per barrel. Brent on ICE Futures declined by 2.12 USD or by 2.7% to 75.87 USD per barrel.
The unemployment data compelled the market participants to think about the soft oil demand in the USA rather than about the oil reserves shrink seen currently, which sustained the price increase in the last week. Retained high jobless rate in the USA is likely to keep spending on goods of prime necessity, what will adversely affect gasoline and fuel demand.
Crude oil joined the general reduction wave covered the most raw commodities in the situation when investors pulled their funds from risky assets and bought again safe-haven US dollar, which strengthened against the euro. The oil prices, as a rule, fall when the US dollar rises because it boosts dollar-denominated prices for oil the market participants who use other currencies.
Gold.
Gold futures closed with a gain on Friday, reaching 1100-dollars level for awhile during the deals that was strongly expecting at the market.
The trading was abrupt at that, the futures which followed the upside trend were bought on the basis of moment indicator, although some traders sold gold fixing the profit on positions opened earlier at the lower levels.
The November gold futures rose by 6.40 USD to 1095.10 USD per ounce according to the trading results at COMEX. During the session they reached the record high of 1100 USD per ounce for near-term futures. The December gold futures quotations, the most actively trading futures, climbed by 6.40 USD to 1095.10 USD per ounce and achieved the record high of 1101.90 USD for the most actively trading futures.
On weekly results the December futures swelled by 55.30 USD or by 5.3%, compared to the previous Friday. The main push to growth became the news that Central Bank of India bought 200 from 403.3 metric tons, which the IMF plans to sell in order to finance the credit programs for poor countries.
Kind regards,
Analyst: Vladimir Donin.
