FX.co ★ Crude oil and Gold review

Crude oil
Crude oil futures closed the trading session on Thursday downside due to the US dollar strengthening and meteorological forecast about weak hurricane season in the Atlantic Ocean that has covered investors’ optimism after jobless claims data was released.
The September contract on crude oil fell by 3 cents or less than 0,1 %, to $71,94 per barrel at the New York Commodity Exchange. Earlier the contract went down to intraday minimum of $70,18 per barrel.
The crude oil contract closed previous trading sessions at the highest level from June, 12. On a whole, the price rose by 60% per barrel this year.
On one hand, presented dynamics shows that the market still remains very powerful, but at the moment it is under a strong pressure and pause is necessary for it. On the other hand, the fundamental data does not correspond to the current prices, so there are concerns that recent prices jump was the last.
On Thursday the National Oceanic and Atmospheric Administration announced that it is expected that hurricane season in Atlantic will be below usual level.
Besides, on Thursday the Federal Trade Commission confirmed the rules prohibiting distortions on the wholesale markets of energy resources which wiould go into effect on November, 4. Examples of such activity include: false public forecasts data, false statistical data and manipulation the information on some kinds of sales, intended for concealment of actual market liquidity.

Gold
Gold futures closed the trades on Thursday downside due to the US dollar strengthening and obvious reduction of risks’ appetite. The December contract on gold fell by $3,40 to $962,90 per ounce at COMEX.
Gold increased at the beginning of trading session after the Bank of England declared about the continuation of quantitative lessening program that had a direct influence on gold in view of inflation growth concern. For this reason, the December contract on gold reached $974,30 per ounce that is the highest level from June, 5. However, further gold went down, as investors’ risk disposition began decreasing that result in increase of the US dollar demand.
Gold also was consolidated on the threshold of the USA tertiary sector employment data released on Friday. Gold may experience downside pressure if mentioned report does not contain inflation implication.

Kind regards,

Analyst: Vladimir Donin.