Commodity update 78

After a weak previous week, the oil prices are proving robust and strengthen around the price range of USD 50. This is due to several disruptions on oil rigs in Syria as well as new data reported by the EIA Petroleum Status Report in the USA. Another factor contributing to a stable oil price is the prospect of an extension of the latest OPEC agreement. OPEC’s next meeting is scheduled on May 23rd. Meanwhile, the USA slightly increased their drilling activities and extended their number of rigs with 10 up to 662 last week.

Stable outlook for Gold

It was a quite month for the Gold price. Compared to last month the precious metal barley moved and closed at USD 1,240. Nevertheless, the metal outperformed in the first quarter and increased about 8,5 percent. The reasons are the still weaker development of the USD and the political risks for the financial market. Moreover, according to a report from the world gold councils India’s demand for gold will recover, after it has lost his title in 2016 as the world’s largest importer of gold.

Positive prospect for Silver

Both Silver and Gold have significantly grown in the first quarter of 2017. Among other factors, uncertainty of the feasibility of Donald Trump’s policy towards reform programs in Europe does play a major role here. Gold has increased by 8,5 percent in the first quarter of 2017 whereas Silver has outperformed by 14,5 percent. However, the future development remains to be seen.