Crude oil
On Tuesday, crude oil prices rose to almost 2-week high. Unexpected increase of signed agreements for the US home sales strengthened optimism regarding the economy. According to the trading results March sweet crude oil futures quotations boosted by 2.80 USD or by 3.8% to 77.23 USD per barrel. On Tuesday, the US National Association of Realtors said that pending home sales index climbed by 1% in December, having surprised economists, who were looking for the figure remained unchanged. The reported data became one more indicator, pointing out the economy recovery, as a result, oil prices ticked up on expectations for energy demand growth. Moreover, weather forecast for northeast of the USA is fall of temperature. It is expected that the temperature will drop below average values within the next 10 days. This fact promoted fuel demand growth.
Gold
On Tuesday, gold futures quotations continued to grow, as fears concerning Greece debt weakened and the US dollar shook. April gold futures quotations climbed by 13 USD or by 1.2% to 1118 USD per ounce.
Assumptions that, on Wednesday, the European Commission would approve Greece plan on the budget deficit shrinking, supported the euro against the greenback, while Greek and German as well 10-year govt bond spread narrowed. Greek plan is important for Greece and for other countries of the Eurozone. The weak US dollar often helps the dollar-denominated metals, such as gold, making them less expensive for holders of other currencies.
During the latest sessions, gold prices were near 1075 USD per ounce, but, perhaps, it would be traded within diapason of 1073.10 – 1163.10 USD in this month, until deals participants determine gold price trends.
Best regargs,
analyst V. Donin
