21.03.2016 - Oil may resume the decline
The price of gold decreases against the strengthening of the US dollar, after rising in the previous days. It is worth noting that previously the Fed announced its intention to raise interest rates twice this year against December's forecast of a price increase by 4 times. This week, the central event will be the publication of the final US GDP growth report for the in the 4th quarter of last year. Earlier, the Fed lowered its GDP growth forecast to 2.2% this year, which is 0.2% less than the forecast. Given the expected strengthening of the US dollar, the Fed is raising interest rates this year and the improvement in investor sentiment, which reduces the demand for protective assets, we expect the fall of gold prices in the medium term.
Light Sweet crude oil price adjusted at the beginning of the week against the backdrop of fixing positions after confident growth during the previous weeks, the strengthening of the US dollar, as well as the publication of the report on the number of active rigs in the United States, which increased for the first time in 13 weeks. Now, there are no fundamental reasons for the continuing oil price growth and speculations about a possible consensus between a number of major oil producers at a meeting on 17 April which will take place in Doha, will be only temporary. We expect the price to drop in the near future and medium term.