27.04.2015 - Demand for gold has fallen

The price of gold fell at the end of the week against the background of uncertainty about the Fed raising interest rates. The weakening of the US dollar caused by weak data on orders for durable goods which increased by 4.0%, but excluding the transportation component fell by 0.2%, failed to change investor sentiment. The demand for gold in China and India, which are the two largest consumers of the metal remains low. In case of hints on the Fed to raise interest rates in June, we forecast a fall in the price of gold to the level of $ 1,150 per troy ounce. We maintain a positive medium-term outlook for gold, but forecast drop in the near future.

The price of Light Sweet crude oil continues to move around levels of 56-58 dollars per barrel. At the moment, oil prices are supported by the weakening of the US dollar, as well as the continuation of the military conflict in Yemen, which threatens the security of supply of oil through the strait through which is transported about 4% of the world's oil supply. At the same time, the number of drilling rigs in the United States continues to decline and is now reduced to 703, which is the lowest level since October 2010. At the same time, OPEC countries continue to increase oil production and the imbalance of supply and demand for their oil is about 2 million barrels in a day. We forecast drop in oil prices in the medium term and expect the signal to open short positions.

RISK WARNING: Trading of complex financial products, such as Stocks, Futures, Foreign Exchange ("Forex"), Contracts for Difference ("CFDs"), Indices, Options, or other financial derivatives, on "margin" carries a high level of risk, and may not be suitable for all investors. The possibility exists that you could sustain a loss of some or all of your initial investment and, therefore, you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with trading these markets, and seek advice from an independent financial advisor if you have any questions or doubts. Please carefully read our full "Risk Disclosure" and "Risk Disclosures for Financial Instruments & Investment Services". FXFINPRO Capital is the trading name of PFX Financial Professionals Limited, a limited liability company formed under the laws of Cyprus, registered with the Registrar of Companies in Nicosia, Cyprus, under nr. HE 237840 and regulated by the Cyprus Securities and Exchange Commission with license number 193/13.