04.08.2015 - Falling of oil continues
The price of gold continues to consolidate above the level of 1180 dollars per troy ounce and today showed a sharp leap on the background of technical factors. The price of the metal is still under the pressure of weak demand for jewelry in Asia, which is also caused by seasonal factors, as well as reduced interest in gold by the investment funds. The expected increase in US interest rates, leads to a decrease in the attractiveness of gold compared with instruments with a fixed interest. We expect the price decline in the near future.
The price of Light Sweet crude oil has continued to fall against the publication of weak data on manufacturing activity in China, which continues to disappoint investors and reduces the growth forecasts of oil consumption in the world. At the same time, the number of drilling rigs in the US rose last week, indicating that the process of reduction of oil production in the United States is slowing, which peaked in March this year. Countries of OPEC increased oil production to the highest level since 2008 - 32.01 million barrels per day. We see no reason to change the current negative trend, but the potential for further decline also declined. Our medium-term outlook for oil remains negative.