21.07.2015 - Gold may correct upwards after a sharp fall
The price of gold yesterday showed a sharp decline, reaching their lowest levels in more than a year on news on the gold reserves of the People's Bank of China, which were almost 2 times less than the expectations of analysts. In addition, the growth of investor confidence in soon increase of interest rates of the Fed also has a negative effect on quotations of the metal. We expect that the gold buying will resume near the level of $ 1,100 per troy ounce, but to change the current negative trend are required new signals. We expect the resumption of price growth in the medium term, but in the near future may see a further decline in prices.
The price of Light Sweet crude oil continues to decline gradually on the background of an excess of oil on the market and the likely growth in supply of oil due to the lifting of sanctions against Iran, which according to experts will allow the country during the year to increase the volume of oil supplies by 700,000 barrels. At the moment, supply exceeds demand by about 2.5 million barrels of oil. It is also worth noting the impact of the strengthening of the US dollar on commodity prices. Our medium-term outlook remains negative and we expect a price drop to the levels of 48-49 dollars per barrel in the near future.