07.10.2015 - Oil soared yesterday

The price of gold continued to rise and reached an important level of $ 1,150 per troy ounce. The increased interest in gold was caused by several factors. Thus, the weakening of the dollar amid weak statistics on the trade balance whose deficit rose to 48.3 billion in August, against 41.8 billion in the previous period, the dollar has weakened. Furthermore investor confidence in the Fed raising interest rates in December has fallen. We should not forget about waiting for the growth in demand for gold in Asia due to seasonal factors. Tomorrow is forecasted the increase in volatility after the publication of minutes of the previous meeting of the Federal Reserve. We expect price correction after the strong growth, but do not rule out continuing upward trend in the near future.

XAU and US Dollars in Forcast

The price of the US benchmark Light Sweet crude oil showed strong growth against the backdrop of a number of factors. Thus, the general secretary of OPEK Abdallah Salem el-Badri said about a possible rebound in oil prices due to the decline in investment in the oil sector in the world, which will reduce the excess of oil supply on the market. At the same time oil consumption growth next year will be around 1.3 million barrels per day. Today, a strong influence on the course of trading will have data on oil reserves in the US (14:30 GMT). We maintain a negative medium-term outlook for oil, but in the near future we can see continued growth.

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.