20.05.2015 - We expect a further decline in oil prices

The price of gold showed strong reduction on the background of positive data on the US housing market, which has led to an increase in the price of the US dollar and the rise of the stock indexes. Investment funds cut positions in gold, and the demand from Asian consumers remains low. ECB official Benoit Kere said the flexibility of quantitative easing, which indicates the probability of more actions on the part of the ECB to maintain inflation at a target level. Today is forecasted the rise in volatility after the publication of minutes of the previous meeting of the US Federal Reserve which will be given to the weak growth assessment of US economic indicators at the beginning of the year. Our medium-term outlook for gold remains positive, but we may see a further drop in prices in the near future.

The price of Light Sweet crude oil has continued to fall against the backdrop of a stronger US dollar after the release of strong statistics on the housing market in the country. According to our estimates, a rebound in oil prices in recent weeks was unreasonably strong and oversupply of oil on the market as well as the likelihood of lifting the sanctions against Iran leads us to think about the likely drop in prices of oil in the near future. Today, a strong influence on the course of trading will have news on oil and petroleum products in the US (14:30 GMT). The drop can be accelerated in the event of fixation of long positions. Our medium-term outlook for oil remains negative and we recommend to open short positions on oil.

RISK WARNING: Trading of complex financial products, such as Stocks, Futures, Foreign Exchange ("Forex"), Contracts for Difference ("CFDs"), Indices, Options, or other financial derivatives, on "margin" carries a high level of risk, and may not be suitable for all investors. The possibility exists that you could sustain a loss of some or all of your initial investment and, therefore, you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with trading these markets, and seek advice from an independent financial advisor if you have any questions or doubts. Please carefully read our full "Risk Disclosure" and "Risk Disclosures for Financial Instruments & Investment Services". FXFINPRO Capital is the trading name of PFX Financial Professionals Limited, a limited liability company formed under the laws of Cyprus, registered with the Registrar of Companies in Nicosia, Cyprus, under nr. HE 237840 and regulated by the Cyprus Securities and Exchange Commission with license number 193/13.