25.07.2014 - Commodities fall with regard to the strengthening of the dollar

The price of gold fell yesterday on positive data on the labor market where the number of initial unemployment claims dropped to 284 thousand, the lowest level since February 2006. It is worth noting that China's Gold Miners Association published a report according to which the demand for gold in China in the first half dropped by 19%, or 136.91 tons to 569.45 tons. Demand for ingots has fallen by 62%, for coins on 44% and in jewelry and industry grew by 11%. The attention of investors is still focused on the situation in Gaza and Ukraine. In the near future fall of quotations of gold may continue, but we maintain a positive outlook for the medium-term.

Cost of American oil fell again, despite the positive data released yesterday by industry in China and the positive statistics on the labor market in the United States. It is worth noting that investors were disappointed by the news about reducing the number of new homes sold to 406 thousand in June, compared with an expected 485 thousand. Moreover, the manufacturing PMI fell to 56.3 in the United States, against the forecast of 57.5. Traders are closely watching the situation in Ukraine and the Gaza Strip, as well as the news regarding negotiations on Iran's nuclear program. We maintain a medium-term negative outlook for oil, but we recommend to follow the geopolitical situation.

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