02.05.2016 - Gold rose strongly on the background of weak data from the US
The price of gold continued to rise during which approached to the psychologically important mark of 1300 dollars per troy ounce. The reason for the strong upward momentum became weak data on personal spending of consumers in the United States, which increased by only 0.1% against the expected growth of 0.2%, as well as the publication of preliminary data on the US GDP growth for the first quarter by only 0.5%, against 1.4% in the 4th quarter of last year. This fact leads to the expectation of a later Fed raising interest rates, and increases the likelihood of the correction on the stock markets, which is positive for gold. We expect a correction on the background of fixing positions, but growth may continue in May.
The price of futures for the Light Sweet crude oil corrected, despite the weakening of the US dollar. The strong rise in oil prices in recently has been speculative and we can see a sharp decline in prices on the background of closing long positions and taking profits. The surplus in the oil market persists despite the decline in production in the United States, which fell below the level of 9.0 million barrels per day. We expect a substantial correction in oil prices with the closest targets near40 dollars per barrel.