06.01.2014 - US oil hit $ 50 a barrel
The price of gold has strengthened amid fears of further slowdown in the global economy, falling oil prices and political crisis in Greece, which could lead to a denial of the country from the use of the euro and the failure of negotiations to restructure the country's debt. It is worth recalling that the elections in the Greek parliament will be held on 25 January. This week, an increase in volatility is expected tomorrow after the publication of minutes of the previous meeting of the Federal Reserve, as well as on Friday after the release of a report on the US labor market. We forecast growth of gold prices in the medium term, but do not exclude the continuation of consolidation near the level of $ 1200 per troy ounce.
The price of Light Sweet crude oil continued to decline and reached the psychologically important mark of $ 50 per barrel. The reason for the recent downward price momentum was the news from Iraq, which announced its intention to increase oil exports in January to 3.3 million barrels per day, against 2.94 million in December. At the same time, the volume of oil production in Russia reached a maximum level in the post-Soviet period 10.667 million barrels a day. These news on the background of worsening forecasts of oil consumption in the world lead to a further decline in oil prices. We recommend holding short positions and see no reason to change the current price dynamics.