23.05.2014 - Markets are waiting for the elections in Ukraine
The price of gold continues to consolidate around the psychological level of $ 1,300 per troy ounce. Investors do not hurry to accumulate positions before the presidential elections in Ukraine, which will be held on May 25 and before which is expected the escalation of conflict in the country. Demand for the metal on Asian markets and from investment funds remains weak. The growth of quotations can be supported by the fall on stock markets. Positive factor for bulls was the easing of restrictions on gold imports in India by the Reserve Bank of India. Let us recall that India is the second largest consumer of gold in the world after China. We keep medium and long term positive outlook for gold quotes.
The price of American benchmark Light Sweet crude oil fell slightly against the strengthening of the U.S. dollar, but is still trading near the level of 104.00 dollars per barrel in connection with the release of positive data on China, where the manufacturing PMI rose to 49.7. In addition, the high level of prices is maintained by limited oil supplies from Libya and the expectation of the presidential elections in Ukraine, which will be held on Sunday. We expect a decline of oil prices in the near future and keep medium-term and long-term negative outlook.