17.03.2016 - The weakening of the US dollar supported commodity prices
The price of gold yesterday showed strong growth amid the weakening of the US dollar after was published the US Federal Reserve statement. Thus, according to the statement the interest rates will be raised two times against the 4 hikes this year declared in December. Nearest increase may take place in June. In addition, US economic growth forecast was downgraded by 0.2% to 2.2% in 2016. At the same time it is predicted that the unemployment rate this year will fall to 4.7%. Reducing the number of hikes this year was expected and after the current rising momentum, we expect the resumption of the negative dynamics of the gold price. Our medium-term outlook is pessimistic.
The price of futures for Light Sweet crude oil showed an increase due to the weakening of the US dollar after the Fed's statement on monetary policy. In addition, support for oil was the US statistics on oil reserves which increased by 1.3 million barrels against an expected increase of 2.9 million barrels. Venezuela's oil minister said that almost 20 countries - oil producers will meet in mid-April in Doha for negotiations on stabilizing the situation on the oil market. Iran announced its intention to increase oil production to 4 million barrels a day and then will be able to consider coordinated actions on the oil market. Our medium-term outlook for oil remains negative and the potential of this growth was reduced.