According to data released by the People's Bank of China (PBoC) on Tuesday, China's foreign-exchange reserves declined by $28 billion to $3.19 trillion in May, the lowest level since December 2011, after a rise by $7.1 billion in April.

The decline was likely driven by a stronger U.S. dollar

Oil prices rose modestly today, reaching the highest level in eight months, helped by the US dollar depreciation and a reduction in oil production in Nigeria due to a series of attacks on oil installations.

According to one source, production of Bonny Light crude oil in Nigeria declined by 170,000 barrels per day after the attacks on the oil infrastructure.

Oil prices jumped nearly doubled since January, when it reached the lowest level since the end of 2003, which was mainly due to the unplanned interruptions in oil production in countries such as Canada, Venezuela, Libya and Nigeria. Sentiment in the market has also improved against the background of decline in US shale oil production. However, as prices have reached a level where drilling activity is profitable for some companies, the number of rigs may begin to grow and the reduction of production volumes in the United States may slow down.

Today, the American oil service company Baker Hughes reported that the number of active drilling rigs in the world fell in May by 19 units, or 1.3%, to 1 thousand. 405 to 1 thousand. 424 in the previous month. Compared to May 2015 the number of drilling rigs decreased by 722 units. The number of oil installations in North America at the end of May amounted to 450 (-28 per month), while the number of oil-producing plants operating in the US fell by 29 units to 408 units. In Europe, it became 5 oil rigs more in the Middle East - at 7, in the Pacific region - 11, in Latin America - 15 fewer towers.

In the course of trading is also affected by expectations the publication of weekly data on US petroleum inventories. Today its report on stocks of the American Petroleum Institute will publish and tomorrow will leave government data. Analysts expect the US Energy Department reported a drop of oil to 3.5 million. Barrels. Yesterday Genscape industry group reported that for the week of June 3 at oil terminal in Cushing fell by 1.0 mln. Barrels.

WTI for delivery in July rose to $50.12 a barrel. Brent for July rose to $51.13 a barrel.

Quotes of gold fell slightly today, but remained near two-week high. The relative stabilization of prices is related to the uncertain prospects of higher interest rates the Fed in the coming months.

Yesterday the head of the US Federal Reserve Yellen gave a largely upbeat assessment of the US economic outlook and noted that the regulator will raise interest rates gradually, without naming specific terms increase. Also, the Fed chief added that investors should not place too much focus on the weak statistics on the labor market. "If the situation in the labor market improves, inflation close to the target level, it would be appropriate to raise rates gradually. If inflation remains low, the Fed can only take limited measures to stimulate in the background of almost zero interest rates. Now the soft monetary policy remains appropriate" - he explained Yellen. Now investors expect the Fed next week will keep rates unchanged, and many continue to believe that at the meeting in July, rates will remain at the same level. Today futures on interest rates Fed indicate that the probability of a rate hike of 2% in June. The chances of an increase in rates are estimated at 23% in July. Recall, the higher interest rates in the US have a negative impact on the price of gold, since lead to a stronger dollar, which trades precious metals. This makes the purchase of gold more expensive for holders of other currencies.

After the fall of 6% in May, against the background of "hawkish" statements by Fed officials, gold prices rose this month by about 2.4%, since the probability of the Fed raising interest rates decreased significantly, especially after the publication of weak data on the US labor market for May.

Gold reserves in the largest gold ETF-fund SPDR Gold Trust fell on Monday by 0.03 percent and amounted to 881.15 tons.

The cost of the August gold futures on the COMEX fell to $ 1241.0 per ounce.

The Fed Chairwoman Janet Yellen said in a speech on Monday that further interest rate hikes were appropriate as the U.S. labour market continued to strengthen and inflation was picking up toward 2% target.

"I expect the U.S. economy will continue to improve and why I expect that further gradual increases in the federal funds rate will probably be appropriate to best promote the FOMC's goals of maximum employment and price stability," she said.

Yellen pointed out that there were uncertainties to the outlook for the economic growth and to the path of the federal funds rate. She noted that Britain's exit from the European Union (EU) could have a negative impact on the U.S. economy.

(raw materials / closing price /% change)

Oil 49.71 +0.04%

Gold 1,247.70 +0.02%