The price of gold has stabilized around the level of 1170 dollars per troy ounce after strong growth against a background of reducing the likelihood of the Fed raising interest rates in June this year. The potential drop in gold prices in the near future is limited by the levels of the cost of gold production, as well as increased demand from Asian consumers who are increasing their purchases at attractive price levels. Demand from investment funds also increased. Today the dynamics of trading will be affected by the statements of politicians at the EU summit regarding the Greek debt crisis. We maintain a positive medium-term outlook for gold, but in the near future may see a drop in prices.
The price of Light Sweet crude oil continues to decline after a sharp rise on Wednesday amid falling US dollar. Quotes are under the pressure of increase in US oil inventories and concerns about reduction in capacity for oil storage in the US and China, which may lead to a sharp fall in prices. In addition, investors are watching the negotiation process with Iran over its nuclear program. In the case of the easing of sanctions, Iran's oil exports will increase and will accelerate the downward movement of oil. We recommend holding short positions with the target at $ 40 per barrel. Our medium-term outlook remains negative.