27.08.2014 - The hostilities continue to affect the commodity prices
The price of gold after yesterday's growth began to decline after the meeting of the presidents of Ukraine and Russia, which did not bring significant results, but also did not aggravated the situation. Leaders agreed to intensify cooperation on economic issues and humanitarian assistance to the territories occupied by the separatists. Strengthening of the dollar against the positive statistics on consumer confidence, which rose to the highest level since 2007, has also reduced the price of gold. Gold demand from Asian consumers and investment funds remains low. The growth of quotations of gold can support the launch of a significant correction in the stock markets. We maintain our positive medium-term outlook for gold.
Light Sweet crude oil price continues to consolidate within a narrow range of 93-94 dollars per barrel. Quotes of oil were supported by positive data on consumer confidence in the United States, which rose to 92.4, compared with an expected 89.1. At the same time, orders for durable goods rose by 22.6%, due to an increase in aircraft orders. Investors continue to monitor the situation in Libya, whose ambassador asked for help in Egypt to protect Libyan institutions, airports, and natural resources. Oil demand in Europe remains weak, and the production of OPEC countries and the United States is growing steadily, which continues to put pressure on the quotations of the black gold. We maintain a medium-term negative outlook on oil, but assume the possibility of insignificant price correction in the near future.