25.08.2014 - Commodity prices have stabilized

The price of gold rose slightly on Friday after news of crossing the Ukrainian border by humanitarian column without being accompanied by representatives of the Red Cross, which aggravated the situation in Ukraine, which is the key point of geopolitical tensions. Statement by the head of the Fed, in which she hinted at an earlier rate hike has not led to a strong reduction in the price of gold. Demand for the metal from investment funds and consumers in Asia remains weak. Interest in gold can be much larger in case of a significant correction on the stock markets. We maintain our positive medium-term outlook for gold.

The price of American Light Sweet crude oil slowed the decline, but continues to move in the downward trend. Among the reasons for the fall of price should be included a decline of demand in America in connection with the completion of the summer driving season, during which traditionally is a growing demand for fuel. In addition, geopolitical risks are reduced, oil production in the United States and OPEC continues to grow, Libya supplies more oil to the market, and Iran can significantly increase the volume of oil supplies in the near future. In this regard, we maintain a medium-term negative outlook for oil, but we expect the correction in the near future.

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