12.08.2015 - The World Bank predicts a fall in oil prices
The price of gold continued to rise gradually amid the weakening US dollar, technical factors and the weakening of the yuan against the decision to change the method of calculating of the exchange rate of the national currency of China. It is worth mentioning that China is the largest consumer of gold in the world and jewelry demand traditionally increases in the late fall and winter before the New Year. At the same time, demand for jewelry is steadily falling. Support for gold can be a significant correction at the US stock market. At the moment, we see no reason to change the negative trend, but we can see the growth of quotations within the correction.
The price of Light Sweet crude oil continues to fall against the backdrop of saving excess of oil on the market, as well as concerns about slowing growth in oil demand growth in China, which began the devaluation of the yuan. It is worth noting that the World Bank published a report according to which the lifting of sanctions against Iran will lead to a drop in oil prices to $ 10 per barrel in 2016. Investors continue to monitor the number of active drilling rigs, reduction of which has stopped and started the moderate growth. In case of the continuation of the downward movement quotations reached the psychologically important mark of $ 40 a barrel. Today, investors' activity will increase in connection with the publication of a report on oil reserves in the US (14:30 GMT). We expect a continuation of the downward movement of price in the medium term.