23.02.2015 - The price of gold declines against the background of improving expectations for Greek crisis
The price of gold continues to gradually decline due to lower fears of investors about a Greek exit from the Eurozone and the failure of negotiations on restructuring Greece's debts. So, on Friday was reached an agreement on the extension of credit agreement for 4 months. Greek representatives pledged not to carry out structural reforms unilaterally. Low activity of traders on the market is due to the celebration of New Year in China, which is the largest consumer of gold in the world. This week, an increase in volatility is expected after the statement by the heads of the ECB and the Federal Reserve on Tuesday and Wednesday, and after the publication of data on GDP growth in the US on Friday. We maintain our positive outlook for the medium-term, but expect a drop in the near future.
The price of Light Sweet crude oil continues to decline amid rising US inventories to maximum levels, and oil production is at its highest level since 1973 - 9.2 million barrels. It is worth noting that the number of drilling rigs in the United States fell to its lowest level since August 2011. Investors did not rush to open short positions in the expectation of reducing excess of oil on the market in the second half of 2015. The course of trading this week will be affected by the data on oil reserves and US GDP growth. We maintain our medium-term negative outlook on oil and recommend holding short positions with the potential price drop to 45.00.