27.04.2016 - Oil may start a correction in the coming weeks

The price of gold rose amid dollar’s decrease in connection with the publication of statistics on the volume of orders for durable goods in the US, which grew by 0.8% in March against an expected increase of 1.9%. In February, the fall of this index was 3.0%. The main event this week will be the publication of the Fed's statement on monetary policy (18:00 GMT). Hints of a rise in interest rates during the next meeting in June will lead to an increase in the US dollar and reduction of attractiveness of investing in gold compared to the US treasuries. We maintain our medium-term negative outlook, but do not rule out growth in the near future in case of a fall on the stock markets.

The price of futures on Light Sweet crude oil rose amid expectations that the growth in demand for oil will lead to a balance of supply and consumption of oil on the market before the end of this year. On the other hand, Iran increased its supply of oil on the market by 1 million barrels since the lifting of sanctions on oil exports. Competition between Saudi Arabia and Iran for market share is likely to continue due to the increased supply of the two countries. In addition, Russia will probably continue to increase supplies to the market. We expect a strong correction in the oil market in the near future.

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.