09.05.2016 - Oil continued to rise due to reduced supply from Canada
The price of gold fell due to the desire of investors to fix the position when approaching the prices to the psychologically important level of 1300 dollars per troy ounce. On Friday, the support for the precious metal became the weak data on the number of no-farm payrolls in the US in April, which increased by 160 thousand, compared to the forecast 203 thousand. On the other hand, growth in hourly wages was 0.3%, which increases the likelihood of growth in consumer spending. Reduced exports to China by 1.8% and imports by 10.9% failed to lead to an increase in demand for defensive assets. The growth of gold may continue in case of a fall on the stock markets. Our medium-term outlook for gold remains negative and we expect a price decline in the near future.
The price of Light Sweet crude oil continued to rise against the backdrop of the negative impact of forest fires in Canada for the supply of oil to the US. According to experts, in connection with fires in Canada decline in supply on the market is about 1.25 million barrels per day. On the other hand, investors realize that this reduction is temporary and an excess of oil on the market will continue after restoration of production volumes in Canada. We maintain a negative outlook on the oil in the coming weeks amid the persistence of the imbalance of supply and demand on the oil market.