FX.co ★ Crude oil and Gold review

Oil

Futures on crude oil closed higher by 3, 7% to the maximum month level of 69$ per barrel. The growth was provoked by the US GDP data release which showed smaller decline than expected in the country’s economy, and the weak dollar promoted the increase in prices on primary goods. And also the growth of the US stock indexes influenced the oil.
September contract on the crude oil rose by 2.51$ to 69.45$ per barrel on the New-York Commodity Exchange, which was the highest closing level from the July 1. The trading remained unstable, as evidenced by the fact that the oil fell to 64, 96$ during the session. On the whole, the oil finished the week with an increase by 2.1%.
In the middle of the week the contract declined by almost 6% after the federal data showed the growth of oil reserves in the USA, indicating an abrupt breakdown of demand for energy resources. Than it rose 5% on Thursday compensating its losses. However, the current rally on the market isn’t supported by the fundamental data.

Gold

Futures on gold grew by 2% to 950$ per ounce due to falling of the dollar after the data release of the country’s GDP for 2 quarter, which promoted the increase in demand for gold metal by means of hedging against weak currencies.
The August’s contract on gold closed higher by 18.80$, or 2%, to 953, 70$ per ounce on COMEX. During the trading session the gold reached an intra-day maximum of 958, 10$, but lowered to 932$ later. The futures contract completed a week practically without changes.
Gold reflects the investors’ mood on the stock and currency markets- and also how markets react to the varying economic picture that results in increase or decrease in the risks’ appetite. That finally results in prices on gold.
Gold reserves in SPDR Trust constituted 1, 072.87 tons on Thursday according to the latest data of the ETF. Gold reserves in the fund cut down about by 50 tons this month.

Kind regards,

Analyst: Vladimir Donin