07.07.2016 - The growth of gold is likely to continue on the background of strong demand

The high level of demand for gold continues to support the growth of quotations. Fears of global economic slowdown and the fall on the stock and commodity markets has led to an increase in prices of defensive asset. In addition, the decline in bond yields has led to an increase in the attractiveness of investing in gold. Investors are waiting for tomorrow's publication of statistics on the US labor market. We expect continued growth in prices in the near future to the level of 1400 dollars per troy ounce.

The price of futures for Light Sweet crude oil rebounded after a sharp decline previously. The pressure also was concerns about weak growth in demand for oil and the growth in the number of active drilling rigs in the United States. In addition, increased investment activity in the sector, which will lead to rise in production in future periods. The sharp rise in oil prices is possible in case of strikes on oil facilities in Norway. Today, the market volatility will increase in connection with the publication of important statistics on inventories of oil and gasoline in the US (15:00 GMT). In addition, investors will pay attention to the data on the volume of production in the United States. We forecast a drop of oil in the near future and medium term.

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.