26.04.2016 - The probability of correction in oil prices has increased significantly
The price of gold resumed its decline after a slight rebound in the near future will probably show increased volatility due to the Fed's statement tomorrow. In case of hints about increase interest rates in July, the price of the dollar and the yield of short-term bonds in the US will grow, which will have a negative impact on the gold price. On the other hand, monetary policy tightening appears negative on the stock markets, which will increase the demand for defensive assets such as gold. We expect increased volatility in the coming days and expect the fall of gold prices in the medium term.
The price of Light Sweet crude oil is reduced on the background of fixing positions after a few weeks of strong growth. It should be noted that an excess of oil supply will probably be saved until the end of the year despite the expected drop in US production. The lack of consensus on freezing oil production and continued growth in exports from Iran, Russia, Libya and other countries will put pressure on the price of oil. Our medium-term outlook remains negative despite the increase in consumption in India and China. In the near future we expect a substantial correction in oil prices.