The price of gold has stopped to decline and now is consolidating above 1244 dollars per troy ounce. It should be noted that the gold price has not declined, despite the strengthening of the U.S. dollar, indicating the demand for the metal from the bulls. Gold buying may be resumed in the area of 1220 dollars per troy ounce. Improved macroeconomic performance in the euro area and the U.S., as well as hopes for a solution of the conflict in Ukraine, stimulates the reduction of prices of defensive assets. 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 increased slightly despite a report on the growth in oil production by OPEC to three-month high of 30.02 million barrels per day. Reduction in supply from Libya was compensated by the increased production in Angola and Iraq. Iraq in May increased its oil exports by 8% due to the launch of a new export terminal with a capacity of 800 tons per day. Today the course of trading will be affected by data on oil inventories in the U.S. (14:30 GMT). We maintain a long-term negative outlook for oil prices.