29.12.2014 - Volatility on commodity markets has fallen
The price of gold rose slightly and now is consolidating near the important level of $ 1200 per troy ounce. Demand for gold is supported by a number of factors. On the one hand, investors fear reduction on global stock markets after the holidays, global growth is slowdown, geopolitical risks continue to support demand for defensive assets. This week volatility is low due to lack of important macroeconomic statistics and the continuation of the holiday period and the low activity of traders. Our medium-term outlook for gold remains positive.
The price of Light Sweet crude oil continues to consolidate near the level of 55 dollars per barrel. The price is supported by the news of the fire in the largest port of Libya, with a volume of about four day-amount of production of oil. Despite this, the imbalance of supply and demand on the market is maintained. Weak growth in demand in Asia and Europe continues to put pressure on oil prices. Given the steady growth of oil production in the United States despite the decline in drilling activity, we keep the medium-term negative outlook on oil and recommend holding short positions.