The price of gold showed a slight increase amid the weakening of the US dollar after the release of statistics on US GDP, which in the first quarter fell by 0.7%, against a previous estimate of 0.2% growth. The reason for the decline was the strong dollar and the unfavorable weather conditions in the winter. In addition, the demand for defensive assets supported the statement of the head of the IMF Christine Lagarde in which she hinted at the possibility of a Greek exit from the Eurozone. Demand for the metal from consumers in Asia remains low despite the recent drop in prices. It is worth noting the strong reduction in demand for jewelry in China and India over the past year. Our medium-term outlook remains positive.
The price of Light Sweet crude oil price showed a fall on weak statistics on the US GDP growth in the first quarter. We recall that the United States is the largest consumer of oil in the world. The reason for the recent growth of quotations of oil was the statistics on the reduction in US oil inventories by 2.8 million barrels, and reduction of the number of drilling rigs in the United States by 13 to 646. This reduction was the 25th in a row. It is worth noting an excess of oil on the market is still near 1.5-2.0 million barrels per day. Investors are waiting for the OPEC meeting on June 5, at which according to our forecast will leave the target production volume of 30 million barrels per day and will not cut production. Lifting of sanctions against Iran in the coming months should lead to a fall in prices. We maintain a medium-term negative outlook on oil.