Announced cut in oil production, gold on a 10 month low

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Since the OPEC members announced a cut in the oil production last week, the prices rose to the highest mark since the middle of 2015. Brent increased about five percent to USD 57.89, WTI about six percent to USD 53.92. The agreed reduction amounts to a drop of 558.000 barrel per day. However, the reduction will be started gradually and will reach its complete extend not until April, respectively May.

Against the background of a possible raise of the US interest rates on Wednesday, Gold started with USD 1,150 per ounce considerably weaker this week. Furthermore, according to experts of Barnabas Gan, gold could suffer from a growing world economy in 2017, which could lower the demand for the precious metal as a safe (haven).

Concerning the industry metals, the nickel price grew about twenty-five percent since January. Currently, nickel notes at USD 9,520 per ton and experts of LBBW expect the first supply shortage for four years. Moreover, a further rise about five percent is expected since nickel could participate from the expanding battery production (especially for electric vehicles).