The price of gold has shown growth amid falling US dollar after the publication of weak statistics on industrial production in the US, which fell in March by 0.6%, against an expected decline of 0.1%. Today, support for gold was a sharp decline in oil, which has increased the demand for defensive assets such as gold. It is worth noting that the growth of purchases of gold ingots in Japan was 35% - to 8192 kilograms in the first quarter of this year, compared to the same period last year. It should be noted that the uncertainty on the stock markets and a likely decline in the near future, will become the basis for further growth in demand for the precious metal. Our medium-term outlook for gold remains negative due to the expected tightening in the US monetary policy.
The price of Light Sweet crude oil showed a strong decline after the meeting of representatives of major oil producers, which was attended by most of the countries of OPEC and Russia, brought no results. Iran did not take part in this meeting, and will continue to increase production volumes. The next such meeting may be held in the summer, but according to our estimates also will not lead to a consensus. Investors today will probably continue to close long positions and a drop of oil is likely to continue in the near future. In the focus this week will be the data on US oil inventories. Our medium-term view remains pessimistic.