Oil prices have fallen dramatically today (WTI fell by about 4 percent, and Brent - 3 percent) were under pressure to strengthen the US dollar and concerns about global oversupply.

Today, the International Energy Agency (MEA) reported that the recovery in oil prices remains uncertain, as production in the United States began to grow again, as well as stocks in storage tanks. This contradicts the view that the decline in oil prices boom constrains production in US shale deposits. The monthly report MEA said that "despite the apparent stability, rebalancing the market, which began with the fall in prices will continue, and this process is going to be quite difficult." The report MEA, published last month, it was noted that the recovery in oil prices is inevitable, as is expected to complete production boom in the United States.

"In the second half of this year, the market will be more balanced, but excess oil still remain in the first half. We still expect that oil prices will fall in the next few weeks due to growth stocks," - said Commerzbank analyst Barbara Lambrecht.

The course of trade also affected the US data. One report showed that producer price index fell to a seasonally adjusted 0.5% last month from January. Excluding volatile food prices and energy index fell 0.5%. Economists had expected prices to rise by 0.2%, while the so-called core prices fell by 0.1%. Meanwhile, preliminary findings presented Thomson-Reuters and the Institute of Michigan, showed that in March US consumers feel more pessimistic about the economy than last month. According to published data, in March, preliminary index of consumer sentiment fell to 91.2 points compared with the final reading for February at around 95.4 points. It is worth noting that, according to the average expert estimates, the index was slightly increase to 95.6 points.

Recall the price of oil falls in the summer of 2014. Experts point out that this is due to an excess of fuel in the oil market. The solution is not to reduce the OPEC quota on oil production increased price collapse. Minister of Energy of Saudi Arabia, explaining the decision, said that the oil market may well resolve itself.

April futures price for US light crude oil WTI (Light Sweet Crude Oil) dropped to 45.07 dollars per barrel on the New York Mercantile Exchange.

April futures price for North Sea Brent crude oil mix fell $ 1.71 to 55.53 dollars a barrel on the London Stock Exchange ICE Futures Europe.

Gold has fallen in price, while returning to a session low, due to the renewed strengthening of the US dollar. It is worth emphasizing the price of the precious metal has been declining for the 10th consecutive session, which is the longest running series in more than 40 years.

"Gold is supported at the level of $ 1,150, although in the short and medium term, there is a tendency to decrease," - said a trader at MKS Group James Gardiner. Meanwhile, an analyst at Phillip Futures Howie Lee said that prices could still rise, but met resistance near $ 1,166, said

Little support have expectations of the Fed meeting. Experts point out that the results of the Fed's FOMC meeting, which will take place next week, will be the determining factor for gold prices. Most likely, the Fed will remove only the wording, indicating a cautious approach in determining the timing of interest rate increases

"To achieve the new targets for improving the economic situation in the United States may take more than a year. In short, the Fed can only change the wording of the statement, "- said Nur al-Hammour of ADS Securities.

The course of trade also affected the US data. The Labor Department said that the producer price index fell to a seasonally adjusted 0.5% last month from January. Excluding volatile food prices and energy index fell 0.5%. Economists had expected prices to rise by 0.2%, while the so-called core prices fell by 0.1%. Most of the reduction in overall prices was associated with a fall of 1.5% in volatile trade services category, which measures changes in the margin, resulting in the wholesale and retail trade. Excluding food, energy, and trade in services, the index remained unchanged in February from January.

Meanwhile, it became known that the stocks of the world's largest gold ETF-secured fund SPDR Gold Trust on Thursday declined by 0.28 percent to its lowest level since late January 750.95 tons.

April futures price of gold on the COMEX today fell to 1152.70 dollars per ounce.

Former Federal Reserve Chairman Alan Greenspan said in an interview with Bloomberg Television that the oil price hasn't reached a bottom yet as the production output still rises. He added that the storage capacity is going to run out.

Mr Greenspan is unsure whether the strong U.S. dollar reflects the strong U.S. or weak global economy.

Oil further declined today with Brent Crude losing -0.30%, currently trading at USD56.91 a barrel - closing in on one-month lows set two days ago. West Texas Intermediate declined by -0.51% currently quoted at USD46.81.

Today the International Energy Agency said that the rebound in prices may be only temporarily and it might be overly optimistic to count on a continuation as the global glut is worsening with no signs of U.S. production to slow down - despite dropping numbers of active rigs. U.S. Crude stocks are at records and spare storage capacity may soon run out. The IEA further stated that it will take at least till the second half of 2015 for U.S. production to slow down.

Gold is trading slightly higher today taking a breather from the recent decline further rebounding from fresh 3-month lows hit two days ago. Gold prices found support in weaker-than-expected U.S. retail sales as weaker data could lead the FED to postpone the planned interest-rate hike. Today all eyes will be on U.S. data on Producer Prices due at 12:30 GMT and the Reuters/Michigan Consumer Sentiment Index.

A stronger U.S. dollar and the prospect for higher U.S. rates recently weighed on the precious metal as the precious metal is dollar-denominated and not yield-bearing. The Fed could start raising rates in the middle of this year (probably in June), and investors are preparing for the Fed next week to get further indications on whether the bank will give up its "patient" approach regarding the timing of a rate hike.

Gold is currently quoted at USD1,155.30, +0,23% a troy ounce. On Thursday the 22nd of January gold reached a five-month high at USD1,307.40.

BLOOMBERG

Greece Complains About Schaeuble in Deepening Conflict

(Bloomberg) -- Greece's war of words with Germany deepened as Greece renewed demands for war reparations and formally complained about Finance Minister Wolfgang Schaeuble.

Germany and Greece confirmed Thursday that the Greek ambassador in Berlin made an official protest late Tuesday to the German Foreign Ministry over comments made by Schaeuble.

Schaeuble and his Greek counterpart Yanis Varoufakis have traded barbs in recent weeks, with Schaeuble suggesting on Tuesday that Varoufakis needed to look more closely at an agreement Greece signed in February and commenting on his fellow minister's communication strategy. Schaeuble said Thursday that any suggestion he had insulted Varoufakis was "absurd."

Source: http://www.bloomberg.com/news/articles/2015-03-12/greece-complains-about-schaeuble-in-deepening-conflict

REUTERS
Oil helps Asian central banks stray from Fed's shadow

Reuters) - Asian central banks are running their own race on monetary policy for the first time in decades, cutting interest rates with a breezy confidence that is absent from other big emerging markets, thanks largely to weak oil prices.

As recently as 2013, when the U.S. Federal Reserve hinted that it would start tapering its loose money policy, which would typically suck capital out of emerging markets and into dollar assets, Asian central banks rushed to raise rates to keep hold of that money.

But now, even with a U.S. rate rise looming, central banks in the region, including those in Singapore, China, India and Indonesia, have on eight occasions this year announced unexpected easing measures.

Source: http://www.reuters.com/article/2015/03/13/us-asia-economy-policy-idUSKBN0M90A820150313

BLOOMBERG

Apple Watch Could Make Gold Cool Again

(Bloomberg) -- If anyone could make gold jewelry fashionable to Americans and Europeans, it's Apple Inc.

U.S., U.K. and Italian demand for baubles made from the metal has been cut in half over the past decade, according to data compiled by Bloomberg from the World Gold Council, as shoppers favored white-colored metals such as silver and platinum. Apple's status as the arbiter of cool means its new $10,000 gold watch and yellow iPhones and MacBooks may entice consumers to buy other gold ornaments, said Neil Meader, a precious metals consultant at Metallis Consulting Ltd.

Apple, which called gold "uniquely luxurious" in its advertising, has a history of swaying consumer tastes with its designs for touch-screen phones and portable music players. While the watch won't move the price of gold, the publicity benefits the metal that in the U.S. and Europe suffers from a reputation as old-fashioned, Meader said.

Source: http://www.bloomberg.com/news/articles/2015-03-13/apple-cool-seen-reviving-gold-s-allure-for-young-buyers-of-bling

(raw materials / closing price /% change)

Oil 47.05 -2.33%

Gold 1,159.00 +0.62%