29.05.2014 - Growth on the stock markets has led to a fall of gold prices
The price of gold continues to decline amid rising U.S. stock markets. It is worth noting that the risks associated with the tense situation in Ukraine are already priced in, and amid growing risky assets, investors reduce part of defensive assets in their portfolios. Compared with the peak of this year, investment companies have reduced long positions on metal by 1/3. Inventories of ETFs that invest in gold, approached to the lows of 2009. Purchases of gold may be resumed near 1250 and 1220 dollars per troy ounce. We expect further reduction of prices in the medium term, but keep a long-term positive outlook for gold.
The price of Light sweet crude oil could not hold above the level of 104.00 dollars a barrel and began to decline on the background of data from the American Petroleum Institute regarding the growth in U.S. oil inventories by 3.5 million barrels, compared with an expected increase of 1 million barrels. Demand for futures is supported by the tense situation in Ukraine and the fall in oil production in Libya. Today, the course of trading may be affected by the data on oil and petroleum products inventories in the United States (14:30 GMT). We maintain a long-term negative outlook for oil prices.