Crude oil
On Friday crude oil futures closed near 1-month low as the reduced demand in the USA made investors waive the oil purchases in spite of the weakening dollar. According to the trading results at the New York Commodity Exchange, the December sweet crude oil futures went down by 59 cents or by 0.8% to 76.35 USD per barrel. It has become the lowest closing level since October 14. Brent oil futures fell in price by 47 cents or by 0.6% to 75.55 USD per barrel.
Crude oil futures fluctuated near 80 USD per barrel during several weeks because of the expectation of growth in demand in prospect. However, the market could not ignore the current exaggerated oil and fuel stocks during the last couple of days.
The oil futures are used for alternative investments on the back of the weakening US dollar, especially considering the fact that dollar-denominated oil became cheaper for other currencies holders.
On Friday the American currency lost some of positions won a day earlier, but it was not enough for investors to resume transfers of significant funds from the currency into oil.
Gold
Investors continued to waive the greenback and to invest their funds in such assets as shares and gold. Under the circumstances gold futures quotations rose almost by 2% at the close of Friday\'s trading, during which prices for this metal almost steadily reached new record highs above 1100 USD per ounce.
According to the trading results at COMEX the November gold futures quotations increased by 10.10 USD to 1116.10 USD per ounce. During the last week, the November futures moved up by 21 USD or by 1.92%. The trading volume on these futures is not high. The December gold futures are trading most actively, their prices also ticked up by 10.10 USD to 1116.70 USD per ounce.
Earlier during the last week the December gold futures reached the record high of 1123.40 USD per ounce. The November gold futures quotations with the nearest date of performance gained high of 1121.30 USD, gold prices at the spot market touched the mark of 1122.87 USD. The futures prices with the nearest date of performance climbed approximately by 26% this year.
Also gold prices surged because of the Central banks activity, including the gold purchase of 200 metric tons by India’s bank from the IMF. Meanwhile, the government of Sri Lanka also buys gold.
The gold market participants attention is drawn to the US dollar inasmuch as historically established feedback between the US dollar exchange rate and the gold price has recently started to approve itself most noticeably.
Best regards,
Analyst: Vladimir Donin
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