18.12.2015 - The growth of the dollar puts pressure on commodity markets
The price of gold continued to decline due to the strengthening of the US dollar after the Fed's decision to raise interest rates by 0.25%, and a statement of intention of further tightening of monetary policy in 2016. Higher interest rates make gold less attractive versus fixed income assets and strengthens the US dollar, which is also negative for gold prices. In the coming months the fall of gold may continue until the psychologically important level of $ 1,000 per troy ounce. Demand in China will support the quotation in the near future, but we expect the price decline in the near future.
The price Light Sweet crude oil reached the next level of the minimum of about 36.00 dollars per barrel. The main reason for the fall in the price is an imbalance of supply and demand on the oil market, which will increase after the lifting of sanctions against Iran that would allow the country in three months to increase supplies by 1 million barrels a day. In addition, the oil inventories in the United States continue to grow. A warm winter in Europe and North America also had a negative impact on the demand for oil. Agreement of congressional leaders about the lifting of the ban on oil exports from the United States, may reduce the level of oil inventories in the country. We maintain a negative medium-term outlook for oil, but do not exclude the correction of prices in the near future.