24.04.2015 - A weaker dollar supported commodity’s prices

The price of gold has shown moderate growth within the local downtrend against the weakening US dollar. The fall of the US currency was caused by data on new home sales in the country, which fell in March to 481 thousand, against 514 thousand. At the same time, the number of initial claims for unemployment benefits in the US rose to 295 thousand, compared with an expected decline of 288 thousand. Investors continue to monitor the situation with the negotiations on the Greek debt crisis. Demand for gold from Indian and Chinese consumers remains weak. We expect continued downward movement of prices in the near future, but our medium-term outlook remains positive.

The price of Light Sweet crude oil increased amid the weakening US dollar, as well as in connection with the resumption of air strikes on the territory of Yemen by Saudi Arabia and its allies. Yemen controls the Bab-el-Mandeb strait, through which about moves 4% of the world's oil. The slight decline in oil production in the US, also supports the bulls. Despite this, the strong fundamental factors as the slowdown of the Chinese economy growth, oversupply of oil on the market and the strengthening of the US dollar continue to put pressure on oil prices. We maintain our medium-term negative outlook on oil and recommend to wait for the signal for opening short positions.

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