(raw materials / closing price /% change)

Light Crude 55.51 +0.45%

Gold 1,176.50 -0.28%

Crude oil fell, extending a fourth weekly decline on concern OPEC's refusal to cut production will worsen a global glut.

Saudi Oil Minister Ali Al-Naimi said OPEC's biggest producer will seek to maintain market share and that global demand growth this year was slower than expected. Iraq plans to boost its production next year, Oil Minister Adel Abdul Mahdi said. Trading volatility stayed at the highest level in more than three years.

"Saudi Arabia is not willing to give up market share," said Kyle Cooper, director of commodities research at IAF Advisors in Houston. "With the U.S. production trajectory intact certainly in the next few months, it's going to be a fight. It certainly looks like oil is heading toward $50."

Oil has slumped about 21 percent since OPEC decided against cutting its production target last month, prompting a plunge in the value of currencies from the Russian ruble to the Norwegian krone. Prices have tumbled by half since June amid surging production and slower-than-expected demand growth. Output in the U.S. is the highest in three decades.

Brent for February settlement dropped 77 cents, or 1.3 percent, to $60.61 a barrel at 10:57 a.m. New York time on the London-based ICE Futures Europe exchange. The volume of all futures was 23 percent below the 100-day average. The European benchmark crude traded at a premium of $4.65 to West Texas Intermediate. Prices have fallen about 45 percent this year, set for the largest drop since 2008.

WTI for February delivery fell $1.27, or 2.2 percent, to $55.86 on the New York Mercantile Exchange with volume 2.1 percent above the 100-day average. The U.S. benchmark is down about 43 percent this year.

Gold prices have dropped significantly in the past few hours after rising earlier in the session. The fall in prices is partly due to the release of data on the US housing market, which disappointed the markets.

Sales of existing homes in November fell to a six-month low. This is a sign that the housing market continues to lag, despite the surge in employment and accelerate economic growth.

As reported on Monday the National Association of Realtors, sales of existing homes fell in November by 6.1% compared to the previous month and adjusted for seasonal variations totaled 4.93 million homes a year. This is the lowest level since May.

According to revised data, in October sales rose to 5.25 million homes a year. This is slightly lower than the initial value of 5.26 million homes for a year, but, nevertheless, it is the highest level this year.

Economists had expected sales in November reached 5.21 million homes a year. Compared to the same period of the previous year, sales in November increased by 2.1%.

This week, the reduction due to the Christmas holidays, analysts predict trading in a narrow range.

"It is unlikely that investors will enter the market at this time of year, but liquidity is so small that if you need to perform any orders, the impact will be significant. My prediction for 2015 is very pessimistic ... If investors are willing to take risks, and at the same while rising interest rates and the dollar, gold will not be able to grow, "- said ABN Amro analyst Georgette Bёle.

In China, gold in early trading on the proposed $ 3 more per ounce spot price in London, and later the margin was reduced to $ 1.

On Tuesday, the market expects the US several economic reports, including the GDP of the third quarter.

The cost of the February gold futures on the COMEX today fell to 1186.60 dollars per ounce.

Brent crude and West Texas Intermediate are trading higher today, rebounding from 5-1/2 year lows hit last week, after Saudi Arabia's oil minister Ali Al-Naimi said on Sunday that lower prices would help demand and spur economic growth and his colleague from the United Arab Emirates demanded production cuts outside the OPEC as he blamed other producers of harming the market with overproduction. According to Bloomberg daily production rose by more than 2 million barrels a day since January 2013.

Brent Crude added +1.19%, currently trading at USD62.11 a barrel and further recovered from lows below USD60 now trading above USD62. Crude hit a low at USD58.50 last week. West Texas Intermediate rose +0.88% currently quoted at USD57.63.

Gold prices slightly recovered today trading below the important level of USD1200 again as the broadly weaker U.S. dollar supported the precious metal but rallying stock markets put further pressure on gold. Last month it reached a four-year low at USD1,131.70 - at the current level gold is almost flat for the year as the precious metal declined from highs in march at USD1,387.70. Trading volumes are expected to be low this week which could lead to volatile and erratic markets. The precious metal is currently quoted at USD1,196.20, +0,20% a troy ounce.

On Wednesday the Fed has indicated that it may raise interest rates next year, replacing the intention to keep them close to zero level "extended period" of time for a promise to show "patience" before making a decision to raise the cost of borrowing.

Gold, which does not bring interest income, it is possible hardly compete with other assets yielding interest, when interest rates rise. In addition, higher interest rates are likely to have support for the US dollar, which also have a negative impact on the situation of dollar-denominated metal.

GOLD currently trading at USD1,196.20

GOLD currently trading at USD1,196.20

BLOOMBERG
Draghi Starts Squaring QE Circle in Month of Persuasion

Mario Draghi has one month to win consensus on quantitative easing by showing he won't endanger the ECB.

As officials prepare to consider sovereign-bond purchases on Jan. 22, the ECB president is working to get as many policy makers and as much of the public on his side as possible. One concession being debated is to require national central banks to be responsible for at least some of their own credit risk, according to people familiar with the talks.

Source: http://www.bloomberg.com/news/2014-12-22/draghi-starts-squaring-qe-circle-in-month-of-persuasion-for-ecb.html

BLOOMBERG

Putin's Secret Gamble on Reserves Backfires Into Currency Crisis

Kremlin insiders gathered in secret last February to answer a crucial question for Vladimir Putin: Could Russia afford the economic blowback from taking over Crimea?

Moscow said yes.

Markets aren't so sure.

As President Putin exulted at the Winter Olympics in Sochi 10 months ago, aides assured him Russia was rich enough to withstand the financial repercussions from a possible incursion into Ukraine, according to two officials involved in the talks.

Source: http://www.bloomberg.com/news/2014-12-17/putin-s-secret-gamble-bet-on-ukraine-backfires-in-ruble-crisis.html

REUTERS
Euro edges up, still shaky on ECB and Greece

(Reuters) - The euro bounced back from two-year lows against a slightly weaker dollar on Monday, with Greece's presidential election and a batch of U.S. data on Tuesday the chief risks to a calmer holiday mood.

The Australian dollar, up 0.3 percent, was the chief beneficiary of a recovery in oil prices that has seen Brent Crude move almost 7 percent higher from last week's more than five-year lows.

The outlook into 2015 for the euro looks weak, with Luc Coene the latest European Central Bank policymaker to point the way towards outright buying of government bonds to stimulate a still moribund euro zone economy.

Source: http://www.reuters.com/article/2014/12/22/us-markets-forex-idUSKBN0K000720141222