The price of gold continued to rise after the speech of Fed chairwoman Janet Yellen in Congress. Rhetoric of Mrs. Yellen was dovish, and the outlook for interest rates has been reduced to an average of 1.4% in 2016 and 2.4% in 2017. It is worth noting that last year, gold declined on expectations of tighter US monetary policy. At the same time, the weakening of the US dollar had a positive impact on the dynamics of prices. The increased demand for defensive assets against the backdrop of falling oil prices and the decline of stock indices will be key drivers for the growth of investment in gold. Current growth may continue in the near future, but we maintain a medium-term negative outlook for gold.
The price of Light Sweet crude oil futures has continued to fall despite the publication of statistics on inventories crude oil in the US and the weakening of the US currency. Thus, the oil reserves in the country decreased by 0.8 million barrels, against an expected increase of 3.1 million barrels per day. Fundamental factors including deterioration of growth forecasts on consumption and saving oversupply of oil this year, will have a negative impact on the dynamics of oil. We maintain our medium-term negative outlook.