Crude oil and gold review.
The oil prices declined on Thursday for the fourth consecutive session, when the disappointing data on unemployment rate and retail sales in the USA enhanced concerns regarding the force of economy revival. According to the trading results, February futures quotations on Light Sweet Crude decreased by 26 cents or by 0,3% to 79,39 USD per barrel.
The trades were volatile during the most part of the session. The futures were moving from the negative zone to the positive one and vice versa on the back of opposition between more unfavorable fundamental figures and prices attempts to raise after when they slumped to the highest closing level for 15 months at 82,75 USD per barrel this week.
A part of purchases, probably, was connected with the fact that some investors referred to the oil as the protection from inflation. But the market could not continue the observed during the end of the day upturn above the level of 80 USD per barrel, as the prices increase was restricted by excess supply.
Trading fluctuations were also due to February options expiration.
Additionally, the prices decline was caused by the fact that stock funds sold February futures and opened positions on March futures in return.
Gold.
After unsteady trades the gold futures quotations grew close to the end of the session, because of purchases by funds on the back of the US dollar fall against other major currencies. Following the results of the trades, January futures quotations rose by 6,20 USD to 1142,60 dollars. At the close of trading, February gold futures quotations increased by 6,20 USD to 1143 dollars per ounce.
Funds risk appetite is strengthening and they stake on further lowering of the American currency. During the last several months the market participants were withdrawing funds from the US dollar and remitted money to another currencies, shares and commodity goods in search of higher profit, herewith gold turned out to be the most attractive and risk asset. Moreover, dollar-denominated assets, like gold, often exert opposite correlation with the greenback, as the dollar\'s fluctuations have an impact on the cost of these assets for the market participants, using another currencies.
Kind regards,
Analyst: V. Donin.
