04.08.2014 - Oil continues to fall on weak demand

The price of gold has increased after weak data on the labor market in the United States, where the unemployment rate rose to 6.2%, against the previous figure of 6.1%. It is worth noting that in addition to economic data, the gold price also depends on consumption in China, which according to experts in 2014 may fall by 20%. Chinese consumers are not rushing to buy gold and expect its further decline. On the other hand the demand for defensive assets is maintained by a tense geopolitical situation related to events in Iraq, Gaza and Ukraine. Today, we expect a low volatility and maintain a medium-term positive forecast with the objectives of 1350 and 1365 dollars per troy ounce.

The price of oil continues to decline due to weak demand in the Atlantic region on the background of a large supply. Events in Iraq, Libya and Ukraine, had almost no effect on the real oil market in the world and on this background, investors are looking at other fundamental factors that point to stronger growth in oil production than consumption. Negative factor is the slowdown in the global economy. Today we expect a low volatility and predict the price correction, but the medium-term outlook remains negative.

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