22.07.2015 - Gold and oil prices continue to drop despite the correction of the US dollar
The price of gold continues to fall against the background of metal sales on the part of Asian investors, low demand for protective assets in connection with the improvement of investors' expectations with respect to the Greek crisis, and on expectations of monetary tightening by the Fed, which will lead to an increase in the dollar and the decrease in interest in gold. According to our forecasts, the potential of fall of gold decreased, and we can see the restoration of the lost positions in the medium term.
The price of Light Sweet crude oil continues to fall, despite the weakening of the US dollar. The main reason for the negative sentiment towards the oil is oversupply on the market, which according to experts' is over 2.0-2.5 million barrels per day and will continue to grow due to the adoption of a decision on the lifting of sanctions on Iran's oil exports, which will lead to growth of the volume of deliveries of the country by about 0.7 million barrels a day in the next year. Today, it is worth paying attention to statistics on oil reserves in the US (14:30 GMT). Our medium-term outlook remains negative.