25.05.2015 - Strengthening of the dollar negatively impacted commodities

The price of gold fell against the strengthening of the US dollar, which has been associated with the publication of data on core consumer price index in the US, which grew by 0.3% in April against the forecast of growth by 0.1%. This fact reinforces the confidence of investors in the earlier interest rate hike by the Fed. Gold demand from investment funds remains weak, and consumers in Asia are in no hurry to increase the reserves of the yellow metal. The lack of consensus on the debt restructuring of Greece support the demand for defensive assets. We keep medium-term positive outlook for gold, but predict that in the near future quotations will remain near current levels.

The price of Light Sweet crude oil slightly strengthened on Friday in connection with the worsening situation in Iraq, where government forces continue to fight militants of ISIS. Despite this, the strengthening of the dollar has led to a change in investor sentiment and oil prices began to decline. Investors are waiting for the OPEC meeting that will be held on June 5th. According to our forecast, the cartel will not cut oil production. Today, in the US and most of Europe is the day off, and volatility will be reduced. We maintain a medium-term negative outlook on oil and forecast its decline in the near future.

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