28.01.2015 - The fall of the dollar supported the commodity markets
The price of gold has shown growth amid weakening of the US dollar after weak data on durable goods orders, which fell by 3.4% against the expected growth of 0.6%. It is also worth mentioning the publication of news regarding the purchase of gold by Russia, which central bank bought 20.73 tons of gold in December. In recent years, central banks increase their gold reserves. Investment funds also have an increased interest in the metal due to the rise in demand for defensive assets. Gold consumption in Asia is reduced by high prices. We maintain our medium-term positive outlook for gold, but do not exclude the price correction in the near future.
The price of Light Sweet crude oil rose slightly against the weakening US dollar after the publication of weak data on durable goods orders. At the same time, traders are not in a hurry to accumulate positions ahead of the Fed statement (19:00 GMT) on monetary policy, as well as in connection with the expectation of statistics on oil reserves in the US (15:30 GMT). Despite the current ascending impulse, medium-term outlook remains negative due to the oversupply of oil on the market and the lack of preconditions for its reduction over the medium term. We maintain our medium-term negative outlook and recommend holding short positions.