The price of gold fell yesterday against the strengthening of the US dollar despite weak data on the labor market in the US, where the number of unemployment claims rose by 20 thousand to 294 thousand. It is worth noting that according to the World Gold Council demand for the precious metal in the 1st quarter rose by 21% per annum to 1289.8 tons, and as a result a shortage of supply totaled 155 tons. Jewelry demand fell by 19%, which means the price sensitivity to investment demand, which is currently supported by the uncertainty regarding the further growth of the stock market. Our medium-term outlook remains negative, but in case of negative dynamics on the stock markets, the price is likely to continue to rise.
The price of Light Sweet crude oil is consolidating around this year's highs. Support for oil quotations were the news of supply disruptions from Libya and Nigeria. On the other hand, the volume of oil supplies from Canada are restored, and the world production grew in April by 250 thousand barrels per day to 96.2 million barrels per day, which points to the fact that output growth in OPEC countries and Russia offsets the decline of production in other countries. According to our estimates, the current price levels allow a number of American producers to return to the market, which limits the potential for further growth. According to our estimates, the decline in oil prices will resume in the near future due to the persistence of excess of supply in the coming months.