Crude oil
Crude oil futures rose slightly on Wednesday as traders were preparing for eventual surprises from the US oil stocks data released on Thursday.
According to the trading results at the New York Commodity Exchange, the December sweet crude oil futures ticked up by 23 cents or by 0.3% to 79.28 USD per barrel. Brent futures climbed by 45 cents or by 0.6% to 77.95 USD per barrel.
As a rule crude oil futures traded moderately during hours ahead Tuesday\'s oil stocks data release published by the American Petroleum Institute, as well as crude oil and fuel data from the US government the next day. However, the Department of Energy data was rescheduled at a later day because of Veterans\' Day celebrating on Wednesday that is why during the whole Wednesday the trades were passing calmly.
The oil prices got a small push up due to China reported about industrial production sharp growth in October and the second record value of oil import volume. The Chinese economy is growing faster than it was expected by many people and analysts, including the Department of Energy, start to adjust their oil prices forecasts for 2010 that the predictions reflect more active demand for it.
Gold
Gold price reached record highs because of investors continued to sell the US dollar and buy gold on Wednesday. It signaled that some market participants still expected the US currency weakness and inflation treat.
The December gold futures quotations the most actively trading futures increased by 12.10 USD to 1114.60 USD per ounce according to the trading results at COMEX. The November futures quotations gained by 12.10 USD to 1117 USD per ounce also.
The gold prices got initial impact for the account of the American dollar weakness. Thereafter the dollar regained lost positions and strengthened a little having beat the gold prices down from the highs.
The president of the Federal Reserve Bank of Dallas Richard Fisher said on Tuesday evening that he was very much aware that extremely low interest rates of the USA did harm to the dollar and he pointed that inflation would likely stay low for a long time.
At the same time, many investors bought gold on the assumption of that the inflation would go up, even within a few years due to the government economic stimulus measures and soft monetary policy.
Regards,
Analyst: Vladimir Donin.
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