02.06.2015 - Markets are waiting for the meeting of OPEC on Friday
The price of gold yesterday showed a strong increase in volatility. The sharp jump in prices was caused by the statement of the head of the Federal Reserve Bank of Boston where it was noted that at the moment there is no reason to raise interest rates and that positive expectations must be supported by statistics. In addition, before the end of the week Greece must complete negotiations with creditors to restructure debt. If negotiations will fail, the country may default. These risks traditionally raise the demand for defensive assets. We recall that during June 5-19 Greece must pay about 1.6 billion euros of debt. Demand for the metal in Asia remained weak. We maintain a positive medium-term outlook for gold.
The price of Light Sweet crude oil showed an increase on the background of a slight correction of the US dollar, as well as better data on manufacturing activity in China, which is the world's second largest oil consumer. At the same time, according to analysts, the growth of oil production in OPEC rose to 31.22 million barrels a day. Investors are waiting for the OPEC meeting on June 5, which will probably leave oil production quotas unchanged at 30.0 million barrels a day. In addition, in June, plan to complete talks on lifting sanctions on Iran's oil exports, which will increase the supply on the market and lead to a drop in prices. We maintain a medium-term negative outlook on oil and recommend holding short positions.