05.01.2014 - Oil continued to decrease after the New Year
The price of gold has returned the lost earlier positions and continues to consolidate near the level of $ 1,200 per troy ounce. Increased volatility was caused by the strengthening of the US dollar. It is worth noting that the demand for defensive assets is supported by the political crisis in the euro area, as well as the likely growth of asset purchases by the European Central Bank to fight deflationary risks and support the economy. It is worth recalling that the demand from Asian consumers are weaker than in the previous year, but remains higher before the celebration of the Chinese New Year. Increased volatility in price is expected on Wednesday after the publication of minutes of the previous meeting of the Federal Reserve. We maintain a positive medium-term outlook for gold.
Fall in the price of Light Sweet crude oil continued. After Christmas, a drop in prices of oil continued in connection with the previously known fundamental reasons. Thus, the volume of oil production in the US rose to its highest level in more than 30 years, the demand for oil in Asia and Europe remains weak, OPEC countries refused to reduce the volume of oil to displace inefficient oil exporting countries. The course of trading this week will be affected by data on oil reserves in the United States and the labor market in America. Our medium-term outlook remains negative and we expect the decline to the level of 50 dollars per barrel.