15.03.2016 - The price of oil has changed the trend to negative
The price of gold decreases against the strengthening of the US dollar and expectations of tomorrow's Federal Reserve statement on monetary policy. In case of growth of investors’ confidence in the earlier Federal Reserve raising interest rates this year, gold prices will continue to fall against the background of the rise of attractiveness of investments into assets with interest income and the strengthening of the US dollar. It is worth noting that China's gold demand fell against the background of rising prices, and in India, which is the world's second largest gold consumer after China, jewelers are on strike against additional jewelry taxation. We forecast a drop in gold prices in the near future and medium term.
The price of futures for the Light Sweet crude oil has replaced the local positive trend in the negative on the background of statements by the oil minister of Iran, according to whom the country will not negotiate on freezing the volume of oil production until the moment when oil production in the country will rise to the level of 4 million barrels per day, which corresponds to the volume of production before the imposition of sanctions against the country. The meeting of major oil producers that was planned on March 20 will be postponed to April. We do not expect to reach consensus in the near future and expect that the oversupply of oil on the market will lead to a strong fall in the near future. Our medium-term outlook remains negative and the probability of a decline in the coming weeks has grown.