12.02.2015 - Investors are watching the decision of the Greek and Ukrainian crisis
The price of gold continued to decline and reached the level of 1220 dollars per troy ounce. The reason for the decrease in quotations of the metal is the expectation of the Fed to raise interest rates in June of this year. Positive statistics on the labor market in America, published on Friday strengthened investor confidence in raising interest rates soon. At the same time, the focus of investors remain on Greek crisis, which will be the central topic of the summit of EU countries, as well as talks in Minsk between the presidents of Ukraine, Russia, France and the German Chancellor. We expect the lack of results, which can lead to de-escalation of the conflict in eastern Ukraine, which will increase the demand for defensive assets. Our medium-term outlook remains positive.
The price of Light Sweet crude oil showed a decline yesterday against the publication of data on oil inventories in the United States, which increased by 4.9 million barrels compared with the expected growth of 3.7 million barrels. In addition, the Energy Information Administration in the United States published a report according to which the production volumes will remain in 2015 and 2016 and will total 9.3 and 9.52 million barrels per day, respectively. Weak data from China continue to negatively affect the analysts' expectations and the excess of oil on the market remains. We expect price decline in the medium term with the potential of fall to $ 40 per barrel.