24.07.2015 - Strengthening of the dollar has led to a decline of gold and oil
The price of gold continued to decline against the background of positive statistics on the US labor market. Thus, yesterday was published statistics on the number of initial unemployment claims in the United States, the number of which has fallen to its lowest level since 1973 and totaled to 255 thousand. This fact reinforces the confidence in the near future increase in interest rates by the Fed, which was negatively displayed on the value of gold. Today, the course of trading will be affected by the data on new home sales in the US (14:00 GMT), which are also likely to lead to the strengthening of the dollar and the fall in the price of gold. We expect a further decline in prices in the near future.
The price of Light Sweet crude oil continues to decline on the background of a strong fundamental factors, the most important among which is the excess of oil supply on the market due to increased production in the United States, the OPEC countries and the lifting of sanctions on Iran's oil exports. Crude oil inventories in the United States resumed growth. According to our forecast, after a sharp fall we can see the price correction in the near future and renewed speculation on reduction on the number of active rigs in the US. A stronger dollar was also negatively displayed on the price of oil. We maintain a medium-term negative outlook on oil and recommend holding short positions.