11.03.2015 - Traders are waiting for data on oil reserves
The price of gold has stabilized around the level of 1160 dollars per troy ounce. On the one hand the fall in metal prices is due to the higher probability of the Fed raising interest rates this summer, which negatively displayed on investor interest in gold. At the same time, speculation about the Greek crisis continue to support the gold price. The potential for further fall is restrained by the average cost of gold production at the level of 1050-1100 dollars per troy ounce. Today the dynamics of trading will be affected by the data on the results of stress tests of leading US banks. We maintain our medium-term positive outlook for gold, but expect further price decline in the near future.
The price of Light Sweet crude oil price continues to decline gradually due to the pending statistics on oil reserves in the United States. It is worth noting that the oversupply of oil raises concerns about the reduction of spare capacity for the storage of oil, which could trigger a sharp drop in prices. Today was published statistics on industrial production in China, whose growth slowed to 6.8% in January, compared with an expected reduction of only up to 7.7%. We recall that China is the second largest oil consumer after the United States. Today, the focus will be data on oil and petroleum products inventories in the US (14:30 GMT). Our medium-term negative outlook remains unchanged.