18.07.2014 - Downed aircraft has led to higher prices for oil and gold
The price of gold rose sharply yesterday and broke the level of 1310 dollars per troy ounce. The reason for the growth of quotations became downed over Ukraine the Malaysian airliner. This situation worsens relations between the West and Russia, which is accused of supplying weapons to the separatists in eastern Ukraine. In addition, Israeli troops launched a ground operation in Gaza. Today, the focus will be on data on consumer confidence in the U.S. (13:55 GMT). In the medium term, we expect growth of geopolitical tensions that will lead to the growth of quotations of gold to target levels at 1350 and 1365 dollars per troy ounce.
The price of U.S. crude oil benchmark rose sharply yesterday after the airliner crash in Ukraine which according to U.S. agencies was shot down pro-Russian rebels in eastern Ukraine. In addition, the growth in oil prices was due to another package of sanctions against Russia, which regards the power and military-industrial sectors of the country. Oil production in Libya once again started to decline and reached a level of 552 barrels per day that is 50 thousand barrels worse than earlier in the week. Today we expect a correction in oil prices, and in the near future the price movement will depend on the news from Libya, Iraq and Ukraine.