24.09.2015 - Weak data from China puts pressure on the oil price
The price of gold shows growth on the back of the dollar correction after rising in recent days. In addition, the fall in equity markets and the weak statistics from China continues to fuel investor interest in defensive assets such as gold. In the coming months we expect to see an increase in demand for gold in Asia due to the holiday season, but compared with the previous year consumption of gold in the region, according to experts' forecasts may fall by 10-15%. The course of trading today will be affected by the important statistics on the volume of orders for durable goods (12:30 GMT) and new home sales in the US (14:00 GMT). In the near future growth may continue, but its potential is still low.
The price of American benchmark Light Sweet crude oil fell despite the statistics on reduction in US oil inventories by 1.9 million barrels compared with an expected reduction of 1.0 million bpd. This fact could not offset the negative of weak statistics on China's manufacturing PMI, which fell to 47.0 that was the minimum value in 6.5 years. According to experts, the oversupply of oil on the market is about 2.5 million barrels a day. At the same time, the expected growth in oil supplies from Iran will increase the imbalance. We expect a continuation of the downward movement of oil in the medium term.