15.08.2014 - Oil prices continue to fall
The price of gold continues to consolidate near the level of 1310 dollars per troy ounce. Traders continue to watch the geopolitical situation in the world. The World Gold Council released a report according to which the demand for gold in April-June 2014 decreased by 16% compared to the same period last year to 963.8 tonnes. The main consumer is the jewelry industry (509.6 tons). Today the course of trading will be influenced by the statistics from the United States. Volatility may rise at the end of the trading week. Our medium-term outlook remains positive.
The price of Light Sweet crude oil accelerated the decline on the background of a number of negative factors. Thus, German GDP fell in the second quarter by 0.2%, compared with an expected decline of 0.1%, while the euro area GDP has not changed despite the expected increase of 0.1%. In addition, in the coming days is to be open the another port in Libya, which will increase the supply of oil in the region. The influence of geopolitical tensions in oil supplies now is minimal and probably will decline. Additional factors for the drop in prices of became weak data on the labor market in the United States. We expect continued downward movement of the price to the target of about 92 dollars per barrel.