22.08.2014 - Demand for gold continues to fall

The price of gold continued to decline after the publication of minutes of the previous meeting of the Federal Reserve, in which was noted a decrease of deflationary risks for the American economy and was discussed the possibility for the earlier rise in interest rates. Hopes for a quick end of the conflict in the east of Ukraine also put pressure on the price of metals. Decline in gold prices increases the demand for it from consumers of physical gold that can stop a further fall. Today, a rise in volatility is expected after the statement by the Fed chairman at the conference in Jackson Hole (14:00 GMT). We maintain our positive medium-term outlook for gold, but allow further reduction in prices in the near future.

July 1, 2014 of XAU-USD Performance

The price of American Light Sweet crude oil corrected yesterday after the release of positive data on the growth of sales on the secondary market of the United States to 5.15 million in July, compared with an expected 5.01 million, indicating the improvement in consumer sentiment, which should lead to increased demand on petroleum products. The future direction of oil prices will depend on the statements of the head of the Fed today at 14:00 GMT. Given the weak growth in demand and an increase in oil production, we maintain a negative medium-term outlook with the target near 92.00 dollars per barrel.

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.