17.07.2014 - China's economic growth has supported oil prices

The price of gold rebounded upwards and continued to rise after a strong decline in the previous trading sessions. The reason for the growth were both technical factors, as well as the speech of the Fed's chairman Janet Yellen in which she noted that interest rates may be raised sooner than expected, but the issue will depend on the macroeconomic indicators. In addition, Mrs. Yellen expressed concerns about the housing market, which has slowed the pace of recovery. Today, the dynamics of prices will depend on the data on the labor and the housing market in the United States. We maintain our positive medium-term outlook for gold 1330 with the objectives and 1350.

The price of the American Light Sweet crude oil rose yesterday amid positive data from China, as well as statistics on oil and petroleum products inventories in the United States. Thus, the GDP of the second world's largest oil consumer in the second quarter showed an increase of 7.5% compared with an expected 7.4%, while industrial production rose in June to 9.2%, compared with the growth of 8.8% in May. U.S. crude inventories unexpectedly fell by 7.5 million barrels, compared with anticipated decline of 2.1 million barrels. Investors continue to monitor the situation in Iraq and Libya, in addition the price of oil may be affected by new sanctions against Russia from the West. We expect that price increase will continue in the near future, but keep medium-term negative outlook for oil.

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