02.07.2014 - Gold again is consolidated in a narrow channel

The price of gold after yesterday's growth against a background of aggravation of a local conflict in Iraq and completion of ceasefire in Ukraine, where in the coming weeks can be completed anti-terrorist operation. The main event of the week will be the release of data on U.S. jobless claims (Thursday). Investment demand for gold is gradually recovering and may increase in case of fall on the stock markets. We maintain a positive medium-term outlook for gold with the objectives at 1350 and 1365.

The price of oil continues to decline gradually on the background of data on reduction of oil reserves by 875 thousand barrels against the forecast of fall by 2.0 million barrels. Inventories of distillates at the same time increased by 4.4 million barrels. Confrontation in Iraq continues to support oil prices. Today, the focus will be on the data on oil and petroleum products inventories from the U.S. Department of Energy (14:30 GMT). We expect the price to continue to trade near current levels until improvement of the situation in Iraq.

RISK WARNING: Trading of complex financial products, such as Stocks, Futures, Foreign Exchange ("Forex"), Contracts for Difference ("CFDs"), Indices, Options, or other financial derivatives, on "margin" carries a high level of risk, and may not be suitable for all investors. The possibility exists that you could sustain a loss of some or all of your initial investment and, therefore, you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with trading these markets, and seek advice from an independent financial advisor if you have any questions or doubts. Please carefully read our full "Risk Disclosure" and "Risk Disclosures for Financial Instruments & Investment Services". FXFINPRO Capital is the trading name of PFX Financial Professionals Limited, a limited liability company formed under the laws of Cyprus, registered with the Registrar of Companies in Nicosia, Cyprus, under nr. HE 237840 and regulated by the Cyprus Securities and Exchange Commission with license number 193/13.