The price of gold continues to fall against the backdrop of a stronger US dollar after the release of statistics on the growth of the consumer price index in the United States, increasing the likelihood of raising interest rates by the Fed. In addition, Janet Yellen said that the Fed is ready to raise interest rates this year and the timing of this step will depend on the economic situation in the United States. Gold demand from investment funds remains weak due to a record value of stock indexes, and consumers in Asia reduced purchases of gold. We keep medium-term positive outlook for gold, but expect a further fall in the near future.
The price of Light Sweet crude oil is consolidated near the level of 60 dollars per barrel. Despite the preservation of excess of oil on the market and a slowdown in reducing the number of drilling rigs in the United States, oil prices remain high. Increased demand from Japan, which imports in April increased by 9.1%, and China, which bought a record 7.4 million barrels per day, support the bulls. On June 5 will be held a regular meeting of OPEC, at which according to our estimates will abandon decline in oil production. We maintain a medium-term negative outlook and recommend waiting for the sell signal.