The price of gold slightly decreased on the background of the success of the anti-terrorist operations in Ukraine, which intensified after the election of a new president. In addition, quotes are negatively affected by the decline in demand for the metal from investment funds and consumers in China. Support for prices may have new measures to deal with low inflation in the euro area, as well as a decline on the stock markets. We keep medium and long term positive outlook for gold.
The price of Light sweet crude oil continues to trade above the level of 104 dollars per barrel. The reason for the growth was the intensification of military actions in Ukraine, which can lead to another deterioration in relations with Russia, which is the second largest exporter of oil and supplies about 30% natural gas of the EU consumption. Oil supplies from Libya remains at minimal levels. Despite this, we expect growth in U.S. oil inventories, settlement around the nuclear program in Iran, reducing of oil consumption in China and the stabilization of the situation in Ukraine, which gives us grounds to keep a long-term negative outlook for oil.