08.01.2016 - Oil is corrected after a strong fall
The price of gold continued to fall yesterday on the background of the next drop in China's stock market and geopolitical tensions in the Middle East. It is worth noting that the current growth of stock indices in China has led to a price correction after the strong growth against the background of increased demand for defensive assets. Today, the dynamics of trading will affect the news on the labor market in the US (13:30 GMT) that will affect investors' expectations about further monetary tightening in the United States, which leads to a drop in the price of gold. We expect falling metal prices in the near future.
The price of futures for American Light Sweet crude oil benchmark is adjusted after the sharp fall caused by the data on the growth in gasoline inventories in the US last week, as well as the deterioration in global growth expectations. In addition, Saudi Arabia continues to reduce oil prices to European buyers in connection with the struggle for market share. The growth of oil supplies from Iran in connection with the lifting of sanctions increases the imbalance of supply and demand on the oil market, which is the main reason for the fall. We expect price correction after the sharp fall, but the medium-term outlook remains negative.