03.06.2014 - Oil fell against the strengthening dollar
The price of gold slowed the decline amid days off in China and Hong Kong. Demand for the metal remains weak. Growth in equity markets reduces interest in defensive assets such as gold. In addition, the markets expect positive data on U.S. growth in the second quarter. Interest in gold from investment funds is also reduced. Purchases may be resumed in the region 1220-1200 dollars per troy ounce. We expect a further decline in prices, but keep a long-term positive outlook for gold.
The price of Light sweet crude oil continues to decline gradually against the U.S. dollar strengthening. Negative impact on the price of oil has a message on the resumption of oil supplies from Libya. It is worth noting that oil production in OPEC countries increased by 75 thousand barrels per day. Decline in oil prices may accelerate because of activation of anti-terrorist operations in Ukraine and its completion. We keep medium and long term negative outlook for oil.