Gold fell sharply, reaching yesterday's low, but soon returned to the opening levels. The trading dynamics was influenced by weakening fears on Deutsche Bank, as well as mixed US data.

Yesterday, Bloomberg reported that some hedge funds have decided to refuse the services of Deutsche Bank's clearing transactions in derivatives, signaling the concerns regarding the conduct of business with the lender. Experts explain that professional market participants are pulling money out of the bank, as it faces a fine from the US Department of Justice in the amount of $ 14.0 billion. Today, Livesquawk citing sources, said that Deutsche Bank may be fined by the US Department of Justice only $ 5.4 billion.

Investors also analyzed recent economic data from the United States and their possible impact on the Federal Reserve's plans for tightening. The Commerce Department reported that US consumer spending remained unchanged in August, but inflation has shown signs of acceleration, giving mixed signals that could affect the cautious policy of the Federal Reserve.

According to the data, consumer spending, which accounts for over two-thirds of US economic activity, has not changed in the last month. Analysts had expected spending to increase by 0.1 percent. Personal income rose 0.2 percent in August, in line with expectations. Robust consumer spending partly offset weak business investment and a drop in inventories in the second quarter, when the economy grew by a modest annual rate of 1.4 percent.

According to the futures market, the likelihood of a Fed hike in December is 57.4% against 52.0% the previous day.

Regarding the situation of the physical gold market, decline in value has prompted Asian consumers to increase purchases of the precious metal before the season of festivals and weddings in India.

The cost of the October futures for gold on COMEX rose to $ 1321.9 per ounce.

This morning, New York futures for Brent have fallen in price by 1.17% to $ 47.28 and crude oil futures for WTI down 1.28% to $ 49.16 per barrel. Thus, the black gold is traded in the red zone as market participants questioned the possibility of achieving a formal agreement between the OPEC countries to reduce oil production. The reason for failure of informal arrangements may be disagreements between the cartel participants.

Recall that OPEC have agreed to limit the production level at 32,5-33,0 million barrels per day from approximately 33.5 million barrels per day produced in August, Reuters writes. The final decision, including quotas for each country and deadlines will be agreed at the OPEC summit in November.

(raw materials / closing price /% change)

Oil 47.72 -0.23%

Gold 1,323.50 -0.19%