The price of gold continues to consolidate above the 1150 dollars per troy ounce. The reason for the decrease in quotations in the last session was the strengthening of the dollar, and the expectation of rising interest rates by the Fed in June. It is worth noting that investment funds reduce the gold reserves. The situation may change in case of a fall on the stock markets, the deterioration of the geopolitical situation or the growth of speculation about the Greek problems. Demand for gold in Asia remains strong amid falling prices to attractive levels. We maintain our medium-term positive outlook for gold, but assume the possibility of continuing the downward price movement in the medium term.
The price of Light Sweet crude oil continues to fall against the strengthening of the US dollar, as well as in connection with the report of the International Energy Agency, according to which inventories in storage tanks and crude oil production in the United States continue to grow. In the second half of the year is expected to decrease the excess oil on the market, but the risk of deficiency of capacities for storage of oil continues to put pressure on oil prices. Today we should pay attention to the statistics on industrial production in the US (13:15 GMT). We maintain our medium-term negative outlook and recommend holding short positions in oil with the potential of reduction up to 40 dollars per barrel.