07.01.2016 - Gold rose amid falling stock markets
The price of gold has shown strong growth against the background of a number of factors that have increased the interest in defensive assets, including the weakening of the yuan and the fall on the stock market in China as a result of which were halted trading on the Shanghai Stock Exchange. At the same time, North Korea's statement regarding the successful test of a hydrogen bomb, and breaking of diplomatic relations between Saudi Arabia and Iran, increase geopolitical risks and maintain the demand for gold. The drop in the US stock markets also compensated the negative effect of a stronger US dollar after the Fed raising interest rates in December. Current growth may continue in the near future.
The price of Light Sweet crude oil continued to fall against the background of data on inventories of crude oil and petroleum products in the United States. Thus, oil inventories fell by 5.1 million barrels compared with an expected increase of 0.7 million barrels, but the sharp rise in gasoline inventories by 10.6 million barrels leveled this fact and has led to a drop in prices. It is worth noting a slight increase in oil production. At the same time, the World Bank has lowered the forecast for global GDP growth to 2.9% in 2016 against the background of a slowdown in emerging markets by 0.6% to 4.8%. After a strong decline we can see the correction of price, but the medium-term trend remains negative and we maintain a negative outlook for oil prices.