Gold prices after a strong growth last week continues to consolidate around the level of 1315 dollars per troy ounce. The reason for the growth strong was the Fed statement regarding the fact that interest rates will not rise further in a long time. In addition, the high demand for defensive assets was supported by the military conflict in Iraq. Growth potential of gold is limited due to the lack of physical gold demand from investment funds and Asian consumers. We expect the growth of price in the medium term in case of correction on the stock markets.
Oil prices continue to rise amid the hostilities in Iraq. We remind that at the moment, Iraq is the second largest exporter of oil among OPEC countries and sells about 2.5 million barrels of oil per day. Most of the current oil production capacities are located in the southern part of the country, which is under the control of the Government of Iraq. Additional driver for growth today was the statistics from China, which indicates industrial development in the country, which should lead to an increase in demand for oil. We expect continued growth in prices over the medium term and recommend holding long positions.