The price of gold continues to decline amid falling demand for the metal on Asian markets and low demand from investment funds that cut their investments in gold. Reducing the probability of a direct military confrontation between Russia and Ukraine also contributes to the fall in metal prices. Purchases of gold may be resumed near 1220 dollars per troy ounce. We expect further reduction of prices in the medium term, but keep a long-term positive outlook for gold.
The price of Light sweet crude oil continues to consolidate near the level of 103.00 dollars per barrel. The data on reduction of personal consumer spending in the U.S. by 0.1% negatively impacted the mood of oil traders. High prices are still maintained by a low level of supply from Libya and the lack of substantial progress in negotiations on Iran's nuclear program. The situation in Ukraine is already priced in, but may again come to the first place in case of a further escalation of the conflict. We maintain a long-term negative outlook for oil prices.