28.07.2014 - Gold is gradually increasing

The price of gold could not continue to fall and again broke the psychological level of $ 1,300 per troy ounce. Among the reasons that support the price of gold, we should highlight the tense situation in Ukraine and the Gaza Strip, where hostilities continue, as well as the risk of a significant correction on the stock markets of the world. The central event of the week will be the U.S. Federal Reserve statement, which may hint on a concrete terms of rising interest rates. Also this week, we should pay attention to the data on the labor market and the U.S. GDP. Gold demand from investment funds and Asian consumers is traditionally low. We maintain a positive medium-term outlook for gold with the objectives of 1350 and 1365 dollars per troy ounce.

The price of the American standard Light Sweet crude oil continued to fall due to the fact that traders got used to consistently tense situation in Ukraine, Iraq and Gaza. It should be noted that the price volatility declined as investors try to assess the impact of deterioration in the new housing market, the positive data on employment and the reduction of oil inventories with a simultaneous increase in gasoline inventories in the country. Data on GDP and unemployment in the U.S., which will be released this week, will be the main drivers of price movements. We maintain our negative medium-term outlook, but do not exclude a possible sharp rise in oil prices in case of aggravation of geopolitical situation.

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