27.02.2015 - The price of gold continues to decline

The price of gold continues to move in a downtrend. The reason for the reduction of the price became the strong data on the growth on the volume of durable goods orders that rose in January by 2.8%, against an expected increase of 1.7%. It is worth noting that demand from Chinese consumers remains elevated due to the completion of celebrating the New Year in China and the return of traders on the market. At the same time, we expect increased interest in gold due to the reduction to attractive levels. We expect the resumption of purchases prices in the range of 1180-1200 dollars per troy ounce, after which the growth is likely to resume with the first targets at 1244 and 1256 dollars per troy ounce. Our medium-term outlook remains positive.

The price of Light Sweet crude oil fell against the strengthening of the US dollar after the release of strong macroeconomic statistics. Investors continue to monitor the oil reserves in the United States that are at the highest level since 1982. On the one hand the prices are under the pressure of excess oil on the market, but analysts expect a reduction in the rate of growth of production and consumption growth in the second half of this year. We maintain our medium-term negative outlook on oil and recommend holding short positions.

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