The price of oil rose today, reaching a high of $ 110, which is a three-month high, but failed to hold its positions and dropped to $ 109.

Note that this dynamics was related to concerns about the decline in U.S. oil inventories, as well as concern that unrest in Egypt could disrupt supplies. Increases in the prices of oil helps violation in Libya, which was hit hard by the protests, and oil theft in Nigeria.

Investors are watching with great interest the developments in Egypt, where seven people were killed and over 260 injured when supporters of Mohammed Mursi faced with opponents of the ousted president and the security forces.

Not unimportant event, who look forward to many market participants, will become tomorrow's speech by Federal Reserve Chairman Ben Bernanke. There is a perception that the U.S. central bank cut its purchases of bonds this year and give up the program by mid-2014.

Analysts also say that the strength of oil prices partly caused by European data.

As shown by the Centre for European Economic Research, German economic sentiment unexpectedly worsened in July.

ZEW indicator of economic sentiment fell by 2.2 points to 36.3 points, while economists had forecast that it will grow to 39.9. However, it remains above the average of 23.7. Meanwhile, the assessment of current economic conditions rose to 10.6 in July from 8.6 last month, and exceeded the expected level 9.

According to the study ZEW, in July in the euro zone economic sentiment improved to 32.8 from 30.6 the previous value. Markets had expected a more modest increase to 31.8. Indicator for the current economic situation has also improved and now stands at 74.7 points.

The cost of the August futures on U.S. light crude oil WTI (Light Sweet Crude Oil) fell to 106.19 dollars a barrel on the New York Mercantile Exchange.

August futures price for North Sea Brent crude oil mixture rose to $ 109.11 a barrel on the London exchange ICE Futures Europe.

Gold prices have risen markedly, which was due to the weakening of the U.S. dollar in anticipation of my head of the Federal Reserve Ben Bernanke, in which, as expected, he will be able to shed light on the future of the program to purchase assets, as well as their timing. Note that the precious metals rose by 5% last week, showing the biggest weekly gain in nearly two years, on hopes for further stimulus after Bernanke's remarks.

But the prices are stuck in a narrow range over the past three sessions, unable to cross the level above $ 1,300. Many investors are of the opinion that the market will have to think of life without quantitative easing, at least in the United States. Note that the narrowing of the bond purchase program will keep raising interest rates and strengthen the dollar, which could reduce the attractiveness of gold.

Meanwhile, we note that gold prices have helped today's U.S. data. It is learned that U.S. consumer prices rose slightly more than expected in June. The rise in prices to a large extent was caused by a jump in gasoline prices.

The Labor Department reported that consumer prices rose 0.5 percent in June, after rising 0.1 percent in May. Economists had expected a price increase of 0.3 percent.

Excluding food and energy, core CPI rose 0.2 percent in June, the same increase was in the previous month, and in the estimates of economists. Energy prices rose in June by 3.4%, while food rose by 0.2%.

Experts point out that the appeal of gold as a safe haven and a hedge against inflation has been tarnished this year, which was due to the strengthening of the dollar, the stock market, rising bond yields, which led to a rapid outflow of gold exchange-traded funds. Recall that this year the stock has decreased by 19 million ounces, or $ 24 billion at current prices.

The cost of the August gold futures on COMEX today rose to a high of $ 1291.30 an ounce.

Change % Change Last

GOLD 1,283.80 6.20 0.49%

OIL (WTI) 106.51 0.56 0.53%