16.05.2016 - The interest in gold remains elevated
The price of gold rose today against the publication of weak statistics from China, because of which has increased the interest in defensive assets. Thus, the growth of industrial production in April was 6.8% compared with the same period last year. It is worth noting that in the previous month, the same figure was 6.8%. On the other hand, the dollar rose against the background of publication of data on US retail sales, which rose by 1.3%, against an expected decline of 0.3%. Considering the possible reduction on the stock markets, the demand for gold as a safe haven for investments, may rise in the near future. Our medium-term outlook remains negative.
The price of Light Sweet crude oil today showed growth against the background of oil supply disruptions from Nigeria, as well as concerns about oil production in Venezuela, which is experiencing a severe economic and political crisis. We recall that the country has the world's largest oil reserves. The OPEC announced an increase in oil production in April to 32.44 million barrels per day that is 188 thousand barrels per day more than in March. This was the highest level since 2008. Despite the situation with disruption of oil supply and the reduction in the volume of US oil production, there is an excess of oil on the market and we maintain a medium-term negative outlook on oil.