19.05.2015 - Iran plans to increase exports after the lifting of sanctions
The price of gold corrected downwards after strong growth, which was caused by weak data on industrial production in the United States. This fact reduces the chance of the Fed raising interest rates anytime soon. On the other hand, investor pessimism regarding the negotiations of Greece and creditors on the restructuring of the debt of the country support the demand for defensive assets. In case of the correction on the stock market, traders are accumulating gold positions. Demand for physical gold remained weak. We keep medium-term positive outlook for gold, but the growth potential is limited.
The price of Light Sweet crude oil declines in connection with the publication of the report in which Goldman Sachs announced on improving the efficiency of shale oil in the United States, as well as the preservation of oversupply on the market of black gold. Iran has stated its intention to return to the volume of oil exports, which were before the introduction of sanctions for 3-6 months after the lifting of sanctions. We recall that the projected easing of sanctions after the final agreement on Iran's nuclear program, which should be reached in June. Weak data on US and Chinese industry also adversely affect the prospects of rising oil prices. We expect a drop of oil in the medium term and recommend waiting for the sell signal with immediate goals around $ 50 a barrel.