06.02.2015 - Volatility of oil remains high
The price of gold is consolidating around the level of $ 1270 per troy ounce. The price volatility decreased before today's publication of data on the number of new jobs in non-farm payrolls and unemployment (13:30 GMT). The improvement in the labor market will lead to a drop in prices of gold. Investors are closely watching the situation regarding the Greek debt problems. At any time the mood of traders may change in case of new statements concerning the Greek crisis from the European Union or the Government of Greece. Demand for gold in Asia is still weak, and the growth on the stock markets reduces interest in defensive assets. Our medium-term outlook for gold remains positive.
The price of US benchmark Light Sweet crude oil continues to show increased volatility after the published information on the reduction of the number of drilling rigs in the United States to its lowest level since October 2013. Also it should be noted the positive effect of reducing the reservation rate in China by 0.5%, which should stimulate the growth of crediting of the real sector of the economy at the second in world consumer of oil. Despite the decline in the number of drilling rigs and reduction of investments in the development of new deposits, on the market remains excess oil that will keep oil prices from the strong growth. We maintain our medium-term negative outlook, but look forward to continuing consolidation of the price around the level of $ 50 a barrel in the near future.