19.06.2014 - Investors continue to follow the news from Iraq
The price of gold continued to rise after the announcement of the result of the meeting of Federal Open Market Committee in the U.S. in which was stated that interest rates will be increased to 1% until the end of 2015 and to 2.25% by the end of 2016. At the same time, the purchase of assets declined to $ 35 billion, 10 billion less than the previous figure. It is worth noting that reserves of investment funds backed by gold continued to decline, while demand in India falls after the end of the wedding season. High quotes are supported by military actions in Iraq. We expect price correction today, but keep medium-term positive outlook.
The price of U.S. benchmark Light Sweet crude oil continues to decline gradually. Fed statement did not affect the mood of traders. At the same time prices fell yesterday on the background of data on oil and petroleum products inventories. So, oil inventories fell by 0.6 million barrels, which coincided with forecasts, while gasoline inventories and distillers increased. Demand for oil futures is supported by the tense situation in Iraq, where yesterday was attacked the largest oil refinery. We expect a gradual decline in oil prices in the near future, but expect the price to remain at high levels for a long time.