17.03.2015 - Oil prices continue steady decline

The price of gold continues to consolidate above the $ 1,150 per troy ounce. Investors did not rush to accumulate positions before the Fed'sstatement on monetary policy, as well as the publication of economic forecasts from the Fed. In case of a fall on the stock markets or worsening geopolitical situation, the demand for gold will rise. The Greek crisis will affect the quotes of the yellow metal in the coming months. Potential of reduction in the price of gold is limited by the levels of production costs at levels 1000-1100 dollars per troy ounce. We maintain our medium-term positive outlook for gold, but admit the possibility of reduction of quotations in the near future.

The price of Light Sweet crude oil continues to fall against the background of statistics on the growth of oil production by 1.3 million barrels per day compared to the same period of the last year. At the moment, the volume of global production is 94 million barrels per day. In addition, negative for oil remain negotiations on Iran's nuclear program, which can lead to a weakening of sanctions and increased oil exports. Analysts fear that the capacity for the storage of oil in the US will be fully used, resulting in a sharp fall in oil quotations. We expect a continuation of the downward movement of the price of oil and recommend holding short positions.

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.