The price of gold rose yesterday after the announcement that the ECB is lowering interest rates and will launch the new program LTRO for 400 billion EUR to stimulate the real economy and to fight against low inflation, which impedes economic growth in the region. Today, the focus of investors will be on the publication of data on the labor market in the U.S. (12:30 GMT). We expect further correction, and maintain a long-term positive outlook.
The price of U.S. benchmark Light Sweet crude oil despite the strong increase in volatility yesterday, continued to consolidate near the level of 102.00. In the next few days in Normandy will pass a number of meetings at which will discuss the situation in Ukraine. Reaching agreements can reduce the level of geopolitical tensions, although the resolution of the crisis will take a long time. Growth in U.S. oil inventories and increasing supplies from Libya and Iraq will negatively affect the dynamics of oil prices. We keep medium and long term negative outlook for oil.