20.01.2015 - Reduction in forecasts of global GDP growth has increased the demand for gold

The price of gold continued to rise after some consolidation around the important level of 1278 dollars per troy ounce. Gold reserves of the world's largest investment fund that invests in gold rose to 730.89 tons, indicating a sharp increase in demand amid investors' uncertainty about the further growth of risky assets. Volatility on the European stock markets, the expectation of the ECB's decision on the program of quantitative easing and parliamentary elections in Greece, which may lead to a new round of debt crisis in the Eurozone offset the negative effect of a stronger US dollar. Today stimulus for the strong growth was the reduction of global economic growth forecast by the International Monetary Fund in 2015 to 3.5%, which is 0.3% less than the October forecast. We expect further growth of gold and maintain a medium-term positive outlook.

The price of Light Sweet crude oil could not continue to grow and resumed the downward movement against the lowered forecasts of the IMF, regarding global growth to 3.5% in 2015. Negative factor for the analysts have become the data on reduction in housing prices in China by 4.3% last year. At the same time, China's GDP growth in the 4th quarter was 7.3% compared to the same period of the last year, which is 0.1% better than the forecast of analysts. The rate of decline in prices has slowed due to the decrease in the number of drilling rigs in the United States to its lowest level since October 2013. Despite this, an excess of oil on the market continues to put pressure on the stock, and we expect a further decline in oil prices in the medium term with the target at $ 40 per barrel.

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