16.05.2014 - It is expected the increase in demand for oil in China, India and Saudi Arabia
The price of gold fell yesterday on the background of positive data on the U.S. labor market. Now, the price continues to consolidate around the psychological level of $ 1,300 per troy ounce. Investors do not hurry to accumulate positions before the presidential elections in Ukraine, which will be held on May 25 and before which is expected the escalation of conflict in the country. Demand for the metal on Asian markets and from investment funds remains weak. The growth of quotations can be supported by the fall on stock markets. We keep medium and long term positive outlook for gold quotes.
The price of American benchmark Light Sweet crude oil fell slightly against the strengthening of the U.S. dollar, but regained upward movement on the back of higher demand forecast for oil from China, India and Saudi Arabia. High oil prices are supported by supply disruptions from Nigeria, Libya, and the tense situation in Ukraine. Considering the drop in oil demand in the U.S. and record levels of inventories and production of oil, we keep medium and long term negative outlook for oil.