25.06.2014 - Military action in Iraq support oil prices

The price of gold could not continue to grow at a stronger dollar, after the release of positive data on new home sales in the U.S., which grew to 504 thousand in May with an expected growth by 442 thousand. Despite this, the high level of prices is supported by growth in consumer inflation in the United States amid the lack of prospects for a rapid increase in interest rates. Factors that support gold prices are also the military actions in Iraq and the failure of the peace plan in Ukraine. The growth of price of the metal may accelerate in case of decrease on global stock markets. We maintain a positive medium-term outlook for gold.

The price growth of U.S. crude oil benchmark stopped yesterday after the publication of the report by the American Petroleum Institute oil and petroleum products in the United States. Thus, crude oil inventories increased by 4 million barrels, compared with an expected decline of 2 million. We recall that the high level of oil prices is held in connection with the military actions in Iraq, which threaten interruptions of oil supplies to world markets. We expect that in the medium term, oil prices will continue to be at high levels.

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