(raw materials / closing price /% change)

Light Crude 69.24 +0.35%

Gold 1,211.90 -0.50%

The cost of oil futures rose today by more than 2%, departing from the five-year low, helped by the depreciation of the US dollar.

Earlier today futures fell to their lowest level since 2009, as investors opened short positions in anticipation of lower prices in response to OPEC's decision last week to maintain current levels of production of raw materials. Concerns over weakening global demand and reported that OPEC producers do not intend to reduce output, had a significant pressure on prices in recent months.

"The market is still a lot of panic," - said principal analyst for oil in the Energy Aspects Amrita Sen. "As soon as the panic subsides, the price of Brent, the likely stabilize at around $ 65-80 per barrel in the short term."

Little influenced by today's data on China. In November, the index of purchasing managers in the manufacturing of China from HSBC, the national index of manufacturing activity fell to a six-month low of 50.0 compared to 50.4 in October, said HSBC Holdings PLC. The index value below 50 indicates a contraction of manufacturing activity compared with the previous month, while the value of the above indicates expansion. "The growth of domestic demand was slow, while new export orders fell to five-month low," - said the chief economist at HSBC Qu Hongbin China. Final figures were unchanged from the preliminary PMI (50.0). "Deflationary pressure remains strong and the labor market continue to weaken," - says Koo. We also add the official manufacturing PMI fell to 50.3 in November from 50.8 in October.

Meanwhile, Bloomberg, referring to the statements of analysts said that may reduce the cost of the hydrocarbons to around $ 40 per barrel. World oil prices may continue to fall and fall as long as the cost of oil producers to compensate for existing fields. Representative of the British Chatham House Paul Stevens said that the US shale oil can pay off even if the quotes around $ 40 per barrel. The International Energy Agency (IEA) believe that oil production in North America will be unprofitable at a cost of $ 42 a barrel.

Cost of January futures for US light crude oil WTI (Light Sweet Crude Oil) rose to 68.09 dollars per barrel on the New York Mercantile Exchange.

January futures price for North Sea petroleum mix of Brent rose $ 3.34, to $ 72.06 a barrel on the London Stock Exchange ICE Futures Europe.

Gold prices rose significantly today, restored with all previously lost ground, which was also associated weakening of the US dollar and the results of the referendum on the gold in Switzerland.

As previously reported, the people of Switzerland voted in a referendum yesterday against the proposal to oblige the SNB to keep gold at least 20% of its reserves. If the relevant law was passed, the SNB would have to increase their gold reserves nearly tripled (now they make up 7.5% of the bank's reserves and equal to 1040 tons), ie the purchase of 1.5 thousand. Tons of gold - half of the annual production of this precious metals in the world - worth about $ 70 billion. Swiss francs. The authors of the bill is withdrawn at this 5 years. Referendum participants also voted against the proposal on the repatriation of all Swiss gold stored abroad, and a ban on the sale of precious metals in the future.

Increase in the price of gold has also helped the dollar's decline against other major currencies as a result of profit-taking by traders after the recent jump. Gold prices are likely to remain reduced and tend to decline further in the near term amid signs of strengthening US economy, which could cause the Fed to raise interest rates sooner and faster than previously predicted. Expectations of growth rates on loans put pressure on gold as a precious metal with difficulty competing with the yield of interest-earning assets at higher rates.

Had little effect as of today's US data. A report published by the Institute for Supply Management (ISM), showed that in November the activity in the US manufacturing sector has deteriorated slightly, but exceeded the forecasts of economists who had expected a slightly larger decrease in the index. PMI index for the US manufacturing fell to 58.7 in November against 59.0 in October. A reading above 50 indicates expansion of industrial activity. Note that the last value was higher than the estimates of experts - is expected to decrease to 57.9.

Meanwhile, it became known that the gold reserves in the SPDR Gold Trust fell to 717.63 tons, the lowest level since September 2008, indicating the departure of investors in the US.

Cost of January futures for gold on the COMEX today rose to 1196.40 dollars per ounce.

Oil prices were under further pressure after the decision of the OPEC to leave output on the current official production target at 30 million barrels a day challenging U.S. shale drillers and other higher-cost producers. Oil prices continued to tumble to their lowest since 2009. In today's trading session Brent Crude lost and is trading -1.21% at USD69.30 a barrel, losing 41% from its peak in June and WTI Crude lost -1.33% currently quoted at USD65.27. China, the world's biggest consumer of energy, profits from low oil prices and is boosting its stockpiles. Crude collapsed into an accelerating bear market last month amid the highest U.S. output in three decades and signs of slowing global demand and economic growth.

Gold, currently trading at USD1,174.50 a troy ounce recouped early trading losses touching a daily low of USD1,142.40 after Swiss voters said no to the "Save Our Swiss Gold" referendum that would have forced the Swiss central bank to hold at least 20 percent of its assets in gold and store them locally. The outcome was no surprise as polls already had forecast the initiative outcome. On Friday India's Reserve Bank eased rules on import, scrapping their 20:80 rule, forcing traders to export 20% of all gold being imported to India, in order to fight smuggling.

The precious metal continues to be under pressure as the U.S. dollar strengthens and falling oil prices make an inflation-hedge via gold less attractive. Investors cut holdings in exchange-traded products.

GOLD currently trading at USD1,174.50

BLOOMBERG

OPEC Inaction Spurs Survival of Fittest as Oil Below $65

West Texas Intermediate tumbled below $65 a barrel to the lowest level since July 2009 amid speculation prices have further to drop before OPEC's decision to maintain output slows U.S. shale supply.

Benchmark futures in New York and London slumped more than 3 percent after capping their biggest monthly loss in about six years as the Organization of Petroleum Exporting Countries signaled the group will leave it to the market to reduce a global glut. Current prices are no guarantee of a significant decline in U.S. shale output, Iran's Oil Minister Bijan Namdar Zanganeh said in an interview on Nov. 28.

Source: http://www.bloomberg.com/news/2014-11-30/oil-slumps-below-65-amid-opec-inaction-to-stem-glut.html

BLOOMBERG

SNB Pledges Steps to Supplement Cap 'Immediately' If Needed

The Swiss National Bank will defend its cap on the franc via currency interventions and is prepared to take additional steps if needed.

"The SNB will continue to enforce the minimum exchange rate with the utmost determination and is prepared to buy foreign currency in unlimited quantities," the central bank, based in Bern and Zurich, said in a statement yesterday. "The SNB will take further measures immediately if required."

The comment came in response to voters rejecting an initiative that would have required the SNB to hold at least 20 percent of its assets in gold. The central bank said it was "pleased to hear" of yesterday's referendum outcome.

Source: http://www.bloomberg.com/news/2014-12-01/snb-pledges-steps-to-supplement-cap-immediately-if-warranted.html

REUTERS

Fed rattled by elusive inflation, but loath to sound alarm yet

(Reuters) - With the U.S. economy humming along at its fastest clip in more than a decade, the Federal Reserve should be confident about its ability to weather a global slowdown and start lifting interest rates around the middle of next year.

But then there is inflation.

Interviews with Fed officials and those familiar with its thinking show the mood inside is more somber than the central bank's reassuring statements and evidence of robust economic health would suggest. The reason is the central bank's failure to nudge price growth up to its 2 percent target and, more importantly, signs that investors and consumers are losing faith it can get there any time soon.

Source: http://www.reuters.com/article/2014/12/01/us-usa-fed-inflation-insight-idUSKCN0JF1BV20141201

(raw materials / closing price /% change)

Light Crude 65.99 -0.24%

Gold 1,167.00 -0.70%