16.06.2015 - Demand for gold remains low
The price of gold continues to consolidate near the level of 1190 dollars per troy ounce. Investors are waiting for the meeting of Eurozone finance ministers in Luxembourg on 18 June at which will continue attempts to resolve the Greek crisis. In case of the failure, Greece may fail to pay on the debt to the IMF. In addition, investors are in no hurry to accumulate positions before the Fed statement on monetary policy on Wednesday, which according to our estimates will point a hawkish mood of the regulator and strengthen the dollar. Gold demand from investment funds and consumers in Asia remains weak that also puts pressure on the gold price. We expect increased volatility in prices this week and maintain the medium-term positive outlook.
The price of Light Sweet crude oil has shown growth after the fall of the previous day. Technical factors, as well as the weakening of the dollar yesterday, were the main reasons of growth. The excess of supply of oil on the market continues to put pressure on the quotes. It is worth noting that OPEC's oil production continues to increase despite the persistence of the quota at 30 million barrels a day. Investors are waiting for tomorrow's statistics on oil reserves, as well as statements that the Fed could support the dollar quotations and lead to a drop in oil prices. Our medium-term outlook remains negative.