(raw materials / closing price /% change)

Light Crude 55.81 -1.17%

Gold 1,189.70 -0.40%

Oil prices rose moderately, departing from the five-year minimum, which was due to speculation that the recent drop is excessive.

Recall oil fell by almost half since June under pressure from concerns about forecasts slow recovery in global demand and oversupply of stocks. Last Friday, the International Energy Agency cut its forecast for global oil demand next year by 230,000 barrels per day to 900,000 barrels after similar cuts by OPEC and the Office of information in the field of Energy.

On the dynamics of trade have also influenced today's data on oil reserves in the United States. The Department of Energy said that the oil reserves in the US stores this week 6-12 December fell by 847,000 barrels to 379.9 million barrels, while the average forecast assumes a decrease of 1.9 million barrels. Gasoline inventories rose by 5.3 million barrels to 222 million barrels, the highest since March 14. Analysts had expected gasoline inventories increase compared to the previous week total of 2 million barrels. Distillate stocks fell by 207,000 barrels to 121.5 million barrels, while analysts had expected an increase of 1 million barrels. Utilization rate of refining capacity fell by 1.9 percentage points to 93.5%. Analysts expected a decrease of 0.1 percentage points. It is worth emphasizing that yesterday's report of the American Petroleum Institute showed an unexpected increase in US oil inventories to 1900000 barrels last week.

Market participants also drew attention to US CPI data. As it became known, the seasonally-weighted index of prices to consumers fell by 0.3% in November and increased by 1.3% per annum. As expected, the main driver of the decline in consumer prices was the drop in oil prices, the price index for gasoline fell to the lowest since December 2008 value. Indices of fuel and natural gas also showed decline, and the index of energy decreased by 3.8%.

In the center of attention - the announcement of the Fed's decision on interest rates. The Fed could delete the phrase about saving rates near zero "for an extended period of time," that would be a step toward raising rates in the middle of next year.

Cost of January futures for US light crude oil WTI (Light Sweet Crude Oil) rose to 56.48 dollars per barrel on the New York Mercantile Exchange.

January futures price for North Sea petroleum mix of Brent increased by $ 1.09 to $ 60.88 a barrel on the London Stock Exchange ICE Futures Europe.

Gold prices fell slightly, while entrenched below $ 1,200 per ounce, which is associated with the expectations of this year's last meeting of the Federal Reserve System. Little influenced by US data showing that the consumer price index fell to a seasonally adjusted 0.3% in October. This marked the largest monthly fall since December 2008, when the US was in a recession. Excluding food and energy, the so-called "core" prices rose by 0.1%. Economists had predicted a drop of 0.1% of the total price and the increase in basic prices by 0.1%. Compared with a year earlier, as a whole, prices rose by 1.3% in November and the basic prices rose by 1.7%. The Federal Reserve is focused on the annual inflation rate of 2%, as a sign of healthy economic growth and price stability. She prefers a separate measure, calculated the Ministry of Trade, which also shows that inflation remains below that purpose.

Investors remained cautious ahead of Fed statement after the constant speculation about the prospect of a rate hike in the US next year, raised expectations that the bank may change its forecast and mitigate the promise to keep interest rates near zero for "an extended period". In recent years, commodity markets benefit from a program of monetary easing by the Fed, on the other hand, are under pressure if the bank tightens its policy.

Pressure on prices had a significant drop in the ruble, which has led to speculation about the sale of the Central Bank of Russia's gold reserves. In this scenario, we can expect a significant drop in prices, in view of what we want to buy it at the existing levels, while a little.

Demand for physical gold in Asia remained weak as traders waited for the announcement of the results of the Fed meeting.

It also became known that the stocks of the world's largest gold exchange-traded fund SPDR Gold Trust fell at the end of Tuesday's 1.8 tons.

The cost of the December gold futures on the COMEX today fell to 1197.60 dollars per ounce.

Brent crude and West Texas Intermediate are trading lower today. Brent Crude lost -0.75%, currently trading at USD59.56 a barrel. Crude slipped below the 60 dollar mark yesterday, its lowest since May 2009. West Texas Intermediate declined -1.41% currently quoted at USD55.14, close to its five-year low. Neither Russia nor the OPEC are going to reduce output as reaction to falling prices and a supply glut as they are fighting for market shares and keeping the pressure on U.S. shale drillers. Market participants are now awaiting the FED's rate decision and key economic U.S. data later in the day.

Gold further recovered and is currently trading just below the important key level of USD1,200 at USD1,197.60 a troy ounce quoted +0,10%. Market participants are awaiting the result of the FED's two-day meeting today to assess the timing of a benchmark interest rate hike. Talk about the fact that the central bank may abandon his former statement, which said that rates will remain near zero "for an extended period of time," on Wednesday, supported the US dollar and damaged precious metals in recent days. Gold, which does not bring interest income, can hardly compete with the assets generating interest income when interest rates rise. A stronger U.S. dollar makes gold more expensive to buy for holders of other currencies. Falling oil prices at five-year lows and potential Russian bullion sales to stabilize the slumping ruble weigh on the precious metal.

GOLD currently trading at USD1,197.60

MARKETWATCH

What Wall Street's big-money managers predict for 2015

Buy Japan. Buy Europe. Buy technology. Avoid energy. Avoid Russia.

That's what the Big Money is saying as we get ready for the new year. This is according to the latest in-depth survey of institutional money managers conducted by Bank of America Merrill Lynch. In total, the poll-takers interviewed over 150 professional investment managers around the world with nearly $450 billion in assets under management.

Source: http://www.marketwatch.com/story/what-wall-streets-big-money-managers-predict-for-2015-2014-12-17

BLOOMBERG

Fed Won't Stop Gold's Recovery in '15, ANZ Says as Asia Buys

Gold prices will recover next year as demand in China and India improves, according to Australia & New Zealand Banking Group Ltd., which forecast an advance for bullion even as the Federal Reserve raises interest rates.

Source: http://www.bloomberg.com/news/2014-12-17/fed-won-t-stop-gold-s-recovery-in-15-anz-predicts-citing-asia.html

BBC

Rouble regains ground as trading remains nervous

Russia's rouble has regained ground from Tuesday's all-time low, although trading remains edgy and volatile.

It opened 4% lower on Wednesday, but edged up. In early trading, one US dollar bought 66 roubles, far fewer than the record low of 79 on Tuesday.

Source: http://www.bbc.com/news/business-30512079

BUSINESSSPECTATOR

Oil prices skid ahead of Fed meeting

US oil prices resumed their downward slide in Asian trade on Wednesday, and Brent crude stayed below the key $US60 mark, as markets braced for the outcome of the US Federal Reserve meeting later in the day.

The market expects the Fed to change some of the language in its policy statement, when it concludes its two-day meeting, to signal that a rate hike is likely in mid-2015. Commodity markets, which have benefited from the easing of US monetary policy in the last few years, could come under pressure if the Fed tightens its stance. Analysts also expect an upward revision to US GDP growth forecasts in response to the slump in oil prices.

Source: https://www.businessspectator.com.au/news/2014/12/17/markets/oil-prices-skid-ahead-fed-meeting

(raw materials / closing price /% change)

Light Crude 55.45 -0.86%

Gold 1,197.10 +0.23%