20.04.2016 - The strike in Kuwait is over and oil resumed the decline
The price of gold showed gains on a number of factors. Thus, the growth in demand for silver, leads to an increase in gold purchases and statistics on the US housing market has disappointed investors and has led to a decline in the dollar. Thus, the number of new home starts fell in March to 1.09 million that is 0.08 million worse than the average forecast. At the same time, the number of permits issued for construction of houses in the United States totaled only 1.09 million vs. expected 1.20 million. Uncertainty about the US growth outlook index, which came close to all-time highs, will support the demand for the precious metal as a defensive asset. Our medium-term outlook for gold remains negative, against the background of the expected tightening in the US monetary policy.
The price of futures on Light Sweet crude oil resumed falling after a three-day strike at the oil companies of Kuwait has ended. At the moment, we are seeing fewer factors that can have a positive impact on the price of oil, and taking into account saving of the excess of oil supply on the market, despite the decline in US production volumes below the level of 9.0 million barrels of oil per day, there is a high probability of falling oil prices in the coming weeks. Today, it is worth paying attention to statistics on oil inventories in the US (14:30 GMT). Our medium-term outlook remains negative and the probability of falling crude oil in the near future has grown.