Analytics, News, and Forecasts for CFD Markets: raw news — 20-10-2014.

The cost of oil futures declined substantially, as market participants remain concerned about the prospects of the global economy and its impact on the demand for raw materials. Pressure on prices also have a speculation that the Organization of Petroleum Exporting Countries will not cut production to support oil prices. Recall November 27 oil ministers of the OPEC countries have planned a meeting in Vienna in which intend to consider the advisability of adjusting the current production at the level of 30 million barrels per day at the beginning of 2015.

"It is unlikely that the recent recovery in prices will continue until such time as we get the exact content by OPEC to cut production", - the expert said Carsten Fritsch Commerzbank. He and several other analysts do not exclude a further decline in oil prices. "Testing in the range of 75-80 dollars per barrel can occur on the current or next week," - says economist ABN Amro Bank in Amsterdam Hans van Kleef.

It is worth emphasizing that the world's reserves are way ahead of demand in recent months. Earlier report showed that oil production in the OPEC reached in September two-year high of 31 million barrels per day, due to increased production volumes in Iraq and Libya.

Market participants are preparing for tomorrow's publication of a number of economic indicators in China, which will give a clue as to the strength of the economic recovery and future course. Recent economic performance of China noted that the recovery remains uncertain and may require further monetary stimulus.

Little support prices have reported that an Iranian president Hassan Rouhani gave an indication of the Ministry of Oil to use "diplomatic means" to prevent a further fall in prices. "This news once again emphasizes that oil producers are concerned about the decline in share price, - the analyst said CMC Markets Michael Hughes. - None of the major countries, OPEC, will not be able to survive long periods without serious consequences, during which oil will cost less than $ 85 per barrel. "

The cost of the November futures for the American light crude oil WTI (Light Sweet Crude Oil) fell to $ 81.10 a barrel on the New York Mercantile Exchange (NYMEX).

Price of December futures for North Sea Brent crude oil mixture fell $ 1.58 to $ 84.84 a barrel on the London exchange ICE Futures Europe.

Gold prices rose markedly today, breaking a series of two-day decline, as the decline in the European stock market has heightened interest in the metal as an alternative asset. Gold has also received support from the dollar index falling 0.15% - to the level of 85.19. A weak dollar tends to increase the demand for gold, as it increases the appeal of the precious metal as an alternative asset and makes dollar-denominated commodities cheaper for buyers in other currencies.

"We think that gold will meet strong resistance at $ 1,250, and the level of support in the near future will be $ 1.220-1.225", - said the dealer MKS Group Sam Laughlin, adding that prices could fall to $ 1,200 with the improvement in the global economy.

The rise in prices is also associated with speculation that a weaker-than-expected growth in the global economy and its impact on the economy of the United States could force the Federal Reserve to delay raising interest rates.

Investors also await the publication of a series of Chinese economic indicators that prompt relative strength of the economic recovery and the future path of monetary policy. Tomorrow China will release data on GDP growth in the third quarter, as well as reports on industrial production, retail sales and investment in fixed assets in September. It is expected that the economy grew by 7.2%, after +7.5% in the 2nd quarter.

It should be emphasized that many experts are increasingly put on the rise in gold prices. In the week before October 14 the number of net long positions increased by 12 thousand. Contracts to 42.2 thousand., Which is the highest level for the last five weeks. Meanwhile, the world's largest reserves of the gold-exchange trading fund SPDR Gold Trust rose last week by 1.5 tons, registering the first weekly inflow since early September. Experts note the duration of this trend will depend on the dynamics of the dollar and the situation on the stock markets. In addition, it is unclear how strong is the demand for physical gold in India this week, according to this, it is likely that prices will drop a bit.

The cost of the December gold futures on the COMEX today rose to 1244.40 dollars per ounce.