The price of gold rose sharply yesterday and compensated the losses associated with the results of the referendum in Switzerland where voted against the ban on the sale of gold by the central bank of the country and on the need to increase the gold up to 20% of the total reserves of the central bank. The growth of quotations was supported by the weakening dollar, as well as fixation of short positions. The fall on the stock markets also increased the demand for defensive assets like gold. It is worth mentioning that the average production cost of the dollar is about $ 1100 per troy ounce and in the case of approximation of prices to these levels, we recommend to accumulate positions in gold. Our medium-term outlook remains positive, but today we can see a price correction.
The oil price has corrected yesterday amid a weakening US dollar and fixation positions after a strong fall last week after the decision of OPEC to maintain oil production quotas at 30 million barrels. It should be noted that the negative for investors was the fall of China's manufacturing PMI to 50.0 (according to HSBC), which is 0.4 less than in December. The comparable figure in the euro area fell to 50.1 against 50.4 in the previous period. On the market remains the imbalance of supply and demand. Analysts assume that the decline may continue till the cost of production of shale oil in the United States, which according to some experts is about 40-42 dollars. We maintain our medium-term negative outlook and recommend holding short positions in oil.