The price of gold fell sharply on Friday amid positive news on the US labor market, where despite the rise in unemployment to 0.1% to 5.7% in January, the number of new jobs in the non-agricultural sector grew by 257 thousand, against the expected increase for 231 thousand. Improvement on the labor market is the basis for raising interest rates by the Fed, which will be negatively displayed on the gold price. Demand for gold in Asia remains weak. Investors continue to monitor the statements of European politicians regarding the Greek crisis, which affects the demand for protective assets like gold. We forecast growth of gold prices in the medium term. Continued fall in the near future is unlikely, and we expect the upward correction in the coming days.
The price of Light Sweet crude oil continued to rise on Friday, despite the strengthening of the US dollar. The price of oil continues to be affected by a number of factors. On the one hand reducing the number of drilling rigs in the United States, the reduction of the investment programs of oil companies and supply disruptions in Libya support the demand for oil, but on the other hand, an excess of oil on the market is kept and in this regard, we expect downward price correction. The focus of investors is also on the Greek crisis, which may adversely affect the economy of the European Union. Our medium-term outlook for oil remains negative and we recommend to open short positions on oil.