11.08.2014 - Geopolitical tensions decreased slightly
The dynamics of the price of gold continues to depend on the geopolitical situation. Thus, the increase on Friday was caused by air strikes of American aviation on militant positions in northern Iraq. In addition, investors have increased the demand for gold after the introduction of retaliatory sanctions by Russia against the EU, USA, Japan, Canada and Australia. Temporary cease-fire in Gaza Strip and the end of the exercises of Russian troops near the border of Ukraine reduced tensions on the markets. Today, the price movement will depend on the speech of the member of the Federal Open Market Committee - Mr. Fischer (7:15 GMT). Growth of gold prices may continue in the case of further fall on the stock markets. We maintain our positive medium-term outlook for gold.
The price of American Light Sweet crude oil continues to decline, after a slight increase on the background of air strikes on rebels in northern Iraq, which is the second largest oil producer in OPEC. Supply in Europe is still higher than demand, which continues to put pressure on the price of oil. At the same time, the level of production in the United States continues to increase. We maintain a medium-term negative outlook for oil, but we recommend to follow the situation in Ukraine, Kurdistan and the Gaza Strip.