03.06.2015 - Oil shows a sharp drop

The price of gold showed a moderate rise on hopes on solution of problems related to the Greek crisis. In addition, negative for the US dollar became the data on the volume of factory orders that fell by 0.4%, which is 0.4% worse than analysts' forecasts. Investment funds continue to reduce the volume of investments in gold, and the demand from Asian consumers remains weak. The main event of this week will be publication of the report on the labor market, which can support the US dollar and increase the likelihood of raising interest rates by the Fed. Our medium-term outlook for gold remains positive, but in the near future quotes are likely to continue moving within the range of 1170-1230 dollars per troy ounce.

The price of Light Sweet crude oil yesterday showed a slight increase amid the weakening of the US dollar, but today quotes are falling rapidly due to the expectation of OPEC meeting on Friday, which is likely to keep oil production quotas at 30 million barrels per day. It is worth noting that over the past month, oil production in OPEC countries exceeded 31 million barrels per day. Today, the course of trading will be affected by the news on oil and petroleum products inventories in the US (12:30 GMT), the growth of which will support the bears on the market. High volatility is forecasted on Friday after the release of a report on the US labor market. Our medium-term outlook for oil remains negative and we recommend holding short positions.

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