27.06.2014 - Oil traders cannot determine the direction of oil prices

The price movement of gold has not changed, and the quotes continue to consolidate near the level of 1315 dollars per troy ounce. We have not seen the price decline even despite the strengthening of the U.S. dollar, after the release of positive data on labor market in the country. Demand for the metal from investment funds and consumers in China remains weak. Growth in demand for defensive assets may resume soon in connection with the end of a truce in Ukraine. We maintain a positive medium-term outlook for gold.

XAU/USD Index of May 15

Prices on the U.S. benchmark of oil continue to move in the corridor 105,00-107,00 dollars per barrel and influenced by two factors. On the one hand the prices are supported by partial removal of the ban on the export of oil from the U.S., on the other - military action in Iraq would not lead to a decrease in supply, and the representatives of the second largest oil exporter in the OPEC announced an increase in the supply of oil to the world market. In the near future the price of oil will probably continue to be traded within the side corridor.

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