02.07.2014 - Gold again is consolidated in a narrow channel
The price of gold after yesterday's growth against a background of aggravation of a local conflict in Iraq and completion of ceasefire in Ukraine, where in the coming weeks can be completed anti-terrorist operation. The main event of the week will be the release of data on U.S. jobless claims (Thursday). Investment demand for gold is gradually recovering and may increase in case of fall on the stock markets. We maintain a positive medium-term outlook for gold with the objectives at 1350 and 1365.
The price of oil continues to decline gradually on the background of data on reduction of oil reserves by 875 thousand barrels against the forecast of fall by 2.0 million barrels. Inventories of distillates at the same time increased by 4.4 million barrels. Confrontation in Iraq continues to support oil prices. Today, the focus will be on the data on oil and petroleum products inventories from the U.S. Department of Energy (14:30 GMT). We expect the price to continue to trade near current levels until improvement of the situation in Iraq.