Commodities Update 62
Drop of oil price, drop of gold price and silver
Oil prices dropped at the beginning of this trading week. Brent oil quotes at USD 46.30 per barrel whereas WTI quotes at USD 45 per barrel. It is still very uncertain if the OPEC will come to an agreement on Wednesday. Prices have been decreasing at the end of last week ever since Saudi Arabia cancelled meetings with non-OPEC producers on Monday.
Since the presidential election of Donald Trump gold lost over 7 percent of its value and silver over 10 percent ( in US-quotes). Prices could fluctuate if in the Italian referendum on December 3rd voters decline reforms of the constitution. The potentially serious impact on the Eurozone could make metals a more interesting investment.
The international supply of aluminum increased by 1.5 percent compared to last October and represents the highest monthly increase YTD. Currently the price for aluminum quotes 20 percent higher than at the beginning of the year. However the future development remains to be seen.