21.05.2014 - We expect a strong movement of gold in the next few days
The price of gold continues to consolidate around the level of $ 1,300 per troy ounce. Traders expect the publication of minutes of the previous meeting of the Federal Open Market Committee of the Fed. The World Gold Council released a report for the 1st quarter of 2014 which noted that the demand for gold coins and bars compared to the same period last year fell by almost 40%, but the outflow from the "gold" investment funds has stopped. An important factor was that consumer demand for gold in China fell by 18%, and in India by 26%. Growth of quotations is possible in the near future on an expected worsening situation in Ukraine because of presidential elections which will be held on May 25. We keep medium and long term positive outlook for gold.
The price of American benchmark Light Sweet crude oil continues to consolidate above 102.00. Traders expect data on oil and petroleum products inventories in the United States (14:30 GMT). The market is also closely monitoring the situation in Libya, where the level of production is about 200 thousand barrels per day. Let us recall that Libya has the biggest oil reserves in Africa. High prices also supported by the possibility of new sanctions against Russia in connection with the events in Ukraine. We keep medium and long term negative outlook for oil.