23.03.2016 - Gold continues to decline
The price of gold after yesterday's growth caused by rising investor concerns after the terrorist attacks in Belgium, resumed falling. It is worth noting that gold demand in India and China has fallen, that together with the strengthening of the US dollar adversely affects the interest in the metal. It is worth noting that the increase in the probability of the Fed raising interest rates adversely affects the attitude of investors to gold, which does not bring interest income. In case of deterioration of the situation on the stock markets of the world, the growth of quotations of gold will resume, but we maintain a medium-term negative outlook for gold and are waiting for further decline in the near future.
The price of Light Sweet crude oil continues to consolidate against the background of the revaluation of the market situation. Thus, earlier quotations grew on hopes on consensus regarding the freezing of the volume of oil production at the level of January after the expected meeting of about 15 representatives of countries that are big oil producers. It is worth noting that the representative of Libya has declared its intention to increase the volume of oil supplies to the market from the current 40 thousand barrels per day. We recall that before the start of the civil war in 2011, Libya was producing about 1.6 million barrels per day. Today, the dynamics of trading in the US will affect the news on oil inventories (14:30 GMT). We forecast a drop in oil prices in the near future and medium term.