30.04.2015 - Oil reserves in the US rose less than expected

Investors fixed positions in gold after weak data on US GDP growth by 0.2% in the first quarter of this year, against an increase of 2.2% in Q4 2014. It should be noted that this fact increases the likelihood of later raising interest rates. At the same time, the Fed said that the slowdown in growth is due to temporary factors. Investors continue to monitor the situation related to the restructuring of the Greek debt. Demand for the metal in China and India remains weak. In case of the correction on the stock markets, the interest in defensive assets grow. Today, volatility is increased due to the release of data on the labor market and personal income and consumer spending in the US (12:30 GMT). Our medium-term outlook for gold remains positive.

The price of Light Sweet crude oil after a long consolidation near the level of 58 dollars per barrel continued to rise and reached the psychologically important level of $ 60 per barrel. The reason for the growth was the publication of data on oil inventories in the United States, which increased by 1.9 million barrels compared with an expected 2.1 million barrels per day. At the same time, news of weak US GDP growth by 0.2% in Q1 2015 led to the fall of the dollar and rising commodity prices. Today, the focus of investors will be on the data on the US labor market and personal income and consumer spending (12:30 GMT). The excess of supply of oil on the market is maintained, and Saudi Arabia is ready to increase the volume of oil to meet demand from Asian countries. We expect that the price will not continue to rise after reaching the level of 60 dollars per barrel and recommend to open short positions on oil.

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