18.03.2015 - The price of oil can update six-year low

The price of gold continues to update the three-month low amid expectations the Fedstatement on monetary policy. In case of hints at an earlier rise in interest rates by the Fed, the demand for gold will fall. On the other hand, the expected rise in interest rates will adversely affect the US stock indexes, which will partially offset the fall in gold prices and increase the demand for defensive assets. Demand in China remains high due to the attractive prices. Today, we are forecasting an increase in volatility. Our medium-term outlook remains positive due to the limited potential for further falls.

XAU 2015 Forcast

The price of Light Sweet crude oil price continues gradual decline due to a number of factors. Thus, oil production continues to grow despite the decrease in the number of drilling rigs and oil and gas companies’ investments. In addition, ongoing negotiations on Iran's nuclear program can lead to a weakening of sanctions and increased oil exports from the country. Demand for oil has also decreased due to the maintenance of a number of refineries that are switching to the production of summer fuels. Today the course of trading will be affected by the news on oil and petroleum products in the US (14:30 GMT). Our medium-term outlook remains negative and we recommend holding short positions.

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