08.08.2014 - Gold continues to rise on the background of geopolitical risks
The price of gold continues to rise, despite the strengthening of the dollar due to the positive data on the labor market in the United States, where the average number of initial claims unemployment over the past 4 weeks has reached its lowest level since 2006. The rise in prices of gold is supported by fears of invasion of Russian troops on the territory of Ukraine and the resolution concerning the use of American aviation in Iraq. We maintain our positive medium-term outlook for gold with targets near 1350 and 1365.
The price of the American benchmark Light Sweet crude oil started to correct upwards amid rising tensions concerning the Ukrainian crisis. NATO officials declared about accumulation of Russian troops near the border with Ukraine and do not exclude the possible invasion of its territory. In addition, Barack Obama authorized the use of air strikes in Iraq, which is the second largest OPEC oil exporter. Today, the growth may continue on the background of fixations of positions before the weekend. We maintain a medium-term negative outlook, but today we can see the continuation of correctional growth.