25.01.2016 - Oil has shown rapid growth within the correction
The price of gold continues to consolidate near the important level of $ 1,100 per troy ounce. The recent growth of quotations was caused by increased interest in defensive assets in connection with strong fall in oil prices and the decline in stock markets around the world. Despite the persistence of instability in the markets and the approach of the New Year celebration in China, the growth potential of the precious metal is limited. It can continue only in the event of further decline in the stock markets. On the other hand to open short positions will be needed new signals. We expect a continuation of the current consolidation in the near future.
The price of futures for Light Sweet crude oil continues to grow rapidly on the background of fixation of short positions after falling about 30% this year. A slight increase in demand for oil caused by a cold weather in North America and Europe, but this effect will be temporary. From a fundamental point of view, there are no reasons for the rise in prices and in the near future after the current correction, the drop in prices is likely to continue. Inventories in the US continue to rise, and the excess of supply will increase due to the rise in the volume of oil supplies from Iran. This situation will put pressure on prices in the coming months. Our medium-term outlook remains negative.