14.10.2015 - Oil continues to decline

The price of gold continues to grow steadily, due to the growing interest in defensive assets amid signs of weaker growth in Chinese economy and the fall on the stock markets. Seasonal factors related to the holiday period in China and India, also contribute to the growth of quotations of the metal. The main factors that affect the investors' expectations about the price of gold is the forecast on the timing of rising interest rates by the Fed, which has a negative impact on the gold price. We expect increased volatility after the release of data on retail sales today (12:30 GMT) and inflation in the US tomorrow. In the near future, growth may continue.

The price of Light Sweet crude oil shows a fall in spite of the news about the growth of China's oil imports by 8.8% over the past 9 months. It should be noted that despite the increase in demand in China, which is the second largest oil consumer after the United States, prices remained under the pressure from slower demand growth in the world and saving the oversupply of oil, which will increase after the returning of additional volumes of oil from Iran after the lifting of sanctions. The International Energy Agency previously issued a report according to which the excess of oil supply will remain in 2016. We expect the fall in oil prices in the medium term, but after the recent fall may see a correction today.

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.