25.03.2015 - Commodities’ prices have stabilized
The price of gold has stopped growth on stronger US dollar, which at the moment is the main factor that affects the quotes of yellow metal. To continue the upward trend price needs to overcome the psychologically important level of 1200 dollars per troy ounce. Inflation data in the US, which grew by 0.2% in February, increased the likelihood of a faster increase in interest rates of the Fed, which is negative for gold prices. Today, the course of trading will be affected by data on durable goods orders in the US (12:30 GMT). Increased volatility is possible in case of news about the decision of the Greek debt crisis. We maintain a positive medium-term outlook for gold.
The price of Light Sweet crude oil could not continue to grow due to the strengthening of the US dollar after the publication of positive statistics on new home sales and inflation. Statistics on China's manufacturing PMI, which fell to 49.2 in March against 50.7 in February, also disappointed investors. The main reasons for the fall of the prices remain the excess oil on the market and a reduction in capacity for oil storage, which can lead to a sharp fall in prices in the coming months. Talks on Iran's nuclear program have not yet led to a weakening of the sanctions, which can also negatively affect the price of oil in the world. Today, traders are waiting for the publication of data on oil reserves in the US (14:30 GMT). Our medium-term outlook remains negative and we recommend holding short positions with a target at $ 40 per barrel.