The price of gold corrected upwards to the level of 1210 dollars per troy ounce amid weakening of the dollar after strong growth on Friday. It is worth mentioning that the reduction in prices at the end of last week was caused by a strong labor market data in the United States, which increased the likelihood of an earlier increase in interest rates by the Fed. Demand in China and India is growing, but remains weaker than last year. This situation is due to the protests in Hong Kong and holidays in China and the devaluation of the Indian rupee. Increase in demand from investment funds can grow in case of a fall on the stock markets, or the growth of geopolitical tensions. We maintain our positive medium-term outlook for gold and recommend to accumulate positions in the range of 1180-1220 dollars per troy ounce.
The price of Light Sweet crude oil continues to be at a level below $ 90 per barrel. The reasons for the negative price dynamics remain reduced demand for oil in the world and the increase in supply from the United States and the countries of OPEC. It is worth noting that Saudi Arabia has previously reduced the prices for Asian consumers, may signal the possible continuation of price competition on the back of weak demand. It is worth noting that in this way in Saudi Arabia are intends to have a negative impact on the country's competitors - Russia and Iran, for which this decline in oil prices appears to slow the development of new deposits. We expect continued downward movement of oil prices in the medium term.