The price of gold started to decrease sharply yesterday amid weakening fears about the stability of the banking system in Portugal. Price drop below 1310 dollars per troy ounce is explained by a hasty closing of long positions amid strong descending impulse. Currently traders are fixing positions. Further progress will depend on today's speech by Janet Yellen in the U.S. Congress (14:00 GMT). We maintain a positive medium-term outlook for gold.
The price of oil within the decline after rising oil production and exports to Libya reached the psychologically important mark of $ 100.00 per barrel of Light Sweet. Decline in industrial production in the euro area by 1.1% vs. expected 0.3% growth also contributed to the fall in oil prices. Today the course of trading will be influenced by the statement of the Head of the Federal Reserve Janet Yellen. We expect a rebound in oil prices due to technical factors. Growth may also intensify due to the negative news on negotiations on Iran's nuclear program or new clashes in Iraq and Libya. Medium-term outlook remains negative.