Brent (ICE) closed barely changed on Thursday. Today in early trading, however, Brent price falls below 115 USD per barrel (USD/bbl) as purchasing manager indices released yesterday fell short of expectations in many cases or confirmed further decline in economic activity.
Regarding the calendar today, it contains no major releases except for US durables. The consensus is looking for a strong 2.5% M/M increase, which is in line with our view. Therefore, we expect no major price action after the release.
Precious Metals
Spot gold posted further gains on Thursday and was therefore seen at the highest level since mid April this year. Physical market in India, world’s top consumer, saw a heightened activity. Record-high price (in terms of rupees) spurred scrap selling, according to Reuters.
Platinum, which price has surged by more than 10 percent over past four weeks, lagged behind its peers on Thursday. The price of the metal has been recently supported by strike of mine workers in South Africa.
Recall that Fed’s Bernanke speech in Jackson Hole is scheduled for the next week. Markets will eagerly watch Bernanke’s comments, especially in light of surprisingly soft minutes from the last FOMC meeting.