Commodities Update 25
Brent oil at all time low, gold prices lightly increased; Precious metals are constant
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Prior to the holiday season the prices of WTI and Brent have to register decreases. WTI dropped 1.00 percent to a value of USD 35.56 and Brent dropped 0.93 percent to a value of USD 36.22. According to Baker Hughes, an oil service contractor, the increasing drillings in the USA could be the main reason for the further decrease of the oil price.
The sustained flood of oil will probably hold on, according to the latest statement of the OPEC. The current approach is to kick out competitors from the USA. As a result the oil supply beyond the OPEC could be decreased in the next year, according to the International Energy Agency. Analysts from Goldman Sachs predict that the growing production capacities may also decrease the price of WTI to USD 20 in 2016.
At the beginning of the week Gold could continue its lightly recovery phase and noted in the peak a price of USD 1.079, which means +1.2 percent. Retrospective the Gold price lost about 11 percent in 2015, as well as Silver, which lost also about 11.5 percent. The expected decrease of the Gold price after the raise of the interest rate of the FED was absent. But, according to analysts of Sociéte Générale and UBS, the current sideways market could be ended through prospective raises in the interest rate in 2016. Therefore, Gold could plunge under the level of USD 1.000.
After the last two bad months platinum and Palladium could increase and noted pleasant numbers. Platinum increased about 1.5 percent to USD 870, whereas Palladium stayed constantly around USD 550. Caused through the recession in China the Platinum fell about 15.4 percent on an all-time low since 2008. The Palladium price had to deal with a minus of about 19.8 percent. Both precious metals are missing a clear support to end the downtrend, according to experts of Stabilitas.
The immense price collapse is getting more dramatic while looking at the historical chart. From 1999 until 2008 the Platinum price was partly twice as high as the gold price. Currently Platinum is trading with a gap of more than 20 percent to the Gold price.