24.03.2016 - The fall on commodity markets is likely to continue
The price of gold continued to decline amid growing hawkish sentiment among Fed representatives. Thus, the head of the St. Louis FRB Bullard said about a possible increase in interest rates of the Fed in April. In addition, it is worth noting a decrease of interest in defensive assets, which also decreases the demand for gold. Yesterday was published positive statistics on new home sales in the US, which rose to 512 million in February, which coincided with the forecast. Today, the course of trading will affect the news in the US the volume of durable goods orders (12:30 GMT). We forecast a drop in the price of gold with a potential target at 1100 dollars per troy ounce.
The price of Light Sweet crude oil continued to fall after the publication of statistics on US oil inventories, which rose last week by 9.4 million barrels to a record high for this time of the year - 522.5 million barrels. It should be noted that the average daily oil production fell to 9.038 million barrels in the US against 9.068 million barrels in the previous week. According to experts, the meeting of a number of major oil producers in Doha, which will be held April 17, does not make sense, because only Saudi Arabia can increase production volumes, and the Iran and Libya are planning to increase the production volumes in the near future, which will compensate a possible reduction in the US. We forecast a drop in oil prices amid saving of the imbalance of supply and demand on the market and growth of inventories.