The price of gold continues to consolidate near the level of 1310 dollars per troy ounce. Price reduction became possible after the news about the admission of international experts to the crash site of the Malaysian airliner in Ukraine and transferring by separatists "black boxes" to Malaysian experts. Geopolitical tensions is still the main driver of increase in gold prices while demand for physical gold from investment funds and Asian consumers remains weak. We maintain a medium-term negative outlook for gold.
The American standard Light Sweet crude oil resumed growth on news concerning maximum workload of refining capacity for the last 9 years, at the level of 93.8%. U.S. crude inventories are reduced due to the increased demand for petroleum products. Bulls are also supported by tensions in the Middle East and Ukraine, where last week was shot down a civilian airliner that can lead to new sanctions against Russia from the West. We maintain a medium-term negative outlook, but admit the possibility of a rise in prices in case of deterioration of the geopolitical situation in the world.