05.05.2016 - Oil is rising because of the wildfires in Canada
The price of gold declines today amid growth of optimism on the stock markets and increasing oil prices. It should be noted that trading volumes decreased due to public holidays in Germany, France and Japan. We expect investors to sell gold around the level of 1300 dollars per troy ounce. On the other hand, uncertainty about the growth in commodity and stock markets against the background of deteriorating macroeconomic data in the US will support the demand for defensive assets. We expect volatility to be increased in May.
The price of Light Sweet crude oil showed a steady growth amid reports on increasing tensions in Libya, which may lead to supply disruptions. In addition, large-scale fires in the area of the oil sands in Canada are threatening to cause stopping production in a number of objects that will reduce the supply of oil on the market. According to our estimates, these factors can lead to the continuation of growth in the near future, but it will be temporary. Our medium-term outlook remains negative and we expect a soon resumption of the negative dynamics.