Quotes of Brent oil all week consolidated within the range of 106.65 – 108.25. However, black gold finished the week in positive territory (1.08%). Asset received support from the report on crude oil inventories in the U.S., which once again showed a decline.
Brent consolidated in the range, Gold slightly declined last week
At the same time, the Israeli operation in the Gaza Strip is not a threat to oil supplies and the meeting of the EU on possible new sanctions against Russia was inconclusive for the oil market. Western Europe are not ready to approve sanctions against Russian oil and gas sector.
Most of the week gold remains under pressure, but on Friday asset could recover, as a result, losses were generally small amounted to only 0.2%. Following the yellow metal, silver also dipped. By the end of 5 working days an asset lost 0.6%. Signs of global economic recovery pressure metal market. By the tensions between Russia and Ukraine, as well as the conflict in the Middle East market is already adapted and it does not cause a sharp demand for defensive assets. Copper rose by 1.9%, buyed by positive statistics from China (the index of business activity in the manufacturing sector rose to 52.0, continuing the upward movement in positive territory).
Gold may been influenced by American statistics in the absence of geopolitical risks growth. Only asset growth will require weaker than expected GDP data and the labor market, as well as insufficient aggressive U.S. Federal Reserve comments that give reason to expect rates conservation at the current level for some time.
Uncertain news background is not make possible to predict the direction of Brent crude oil quotes output of previously established range. Nevertheless, the breakout of one of its boundaries rather may cause sharp movement. In the case of rise above the level of 108.25, we can expect price movements to 110.00 region. In case of reduce amid the breakout of 106.65, the target will be at 105.00 mark.