- FXFINPRO Capital newsletter
10.07.2014 - Investment funds are buying gold
The price of gold continued a gradual growth. Stocks of the world's largest ETF SPDR Gold Trust, which concentrated about 60% of inventories of all gold ETF backed by gold, continued to rise gradually and reached 800.28 tons. Weakening of the dollar after the publication of minutes of the previous meeting of the Fed is also one of the reasons for the price increase along with the aggravation of the situation in Israel and consistently tense situation in Iraq and Ukraine. We maintain a positive medium-term outlook for gold with the closest goals near 1350 and 1365 dollars per troy ounce.
The price of oil continued its rapid decline after publication of data on oil and petroleum products inventories. Thus, crude oil inventories fell by 2.4 million barrels, compared with an expected declining by 1.7 million, while gasoline inventories rose by 600 thousand barrels, which is 3 times higher than the forecasts of experts. Quotes of oil are reduced amid rising supplies from Libya, as well as weakening risks of seizures of oil facilities in Iraq. We expect a continued drop in oil futures in the medium term.