(raw materials / closing price /% change)

Oil 47.98 +0.04%

Gold 1,183.60 -0.48%

After ending the previous session modestly higher, the price of gold showed a substantial move back to the downside, testing offers.

Gold for December delivery plunged $10 to $1,1179 an ounce after rising $1.40 to $1,211.20. With the steep drop, the price of gold fell to a nine-month low.

The sharp pullback by the price of gold came as the U.S. dollar moved higher in reaction to the latest batch of U.S. economic data.

• production cut could reach 1.3 million barrels / day

• The proposed level of OPEC production restrictions implies a reduction of 1.143 million barrels / day (according to independent sources)

• OPEC intends to ask Russia to cut oil production by 300,000 barrels / day

• OPEC asks countries outside the cartel to cut oil production by 500 000-600 000 barrels / day

• OPEC is prepared to go to greater cuts due to a slower than expected rebalancing of the oil market

Gold was down 0.1% at $1.186.80 a troy ounce in volatile morning trade in London. It shed over 2% on Wednesday to close below $1,200 an ounce for the first time since February.

OPEC previously proposed non-OPEC countries production cut of 500K barrels / day instead of 880K. This was reported today to journalists by the head of the Ministry of Energy of the Russian Federation Alexander Novak.

This morning, the New York futures for Brent increased 0.23% to $ 48.05 and WTI rose by + 0.12% to $ 49.01 per barrel. Thus, the black gold is trading in the green zone amid uncertainty in the run-up to the OPEC summit and low activity in connection with the celebration of Thanksgiving Day.

Many experts believe that OPEC will be able to reach some sort of mutual agreement on the reduction of production in spite of the lack of unity among the members of the cartel with respect to whom and how much to reduce its volume. At the same time traders are skeptical that it will be enough to reduce the oversupply in the world market.