27.07.2015 - Weak data from China negatively displayed on the oil price
The price of gold continues to gradually decline on expectations of monetary tightening by the US. It is worth noting that on Friday was published the weak data on new home sales in the US, which fell to 482 thousand, compared with an expected 543 thousand. This fact has led to the weakening of the US dollar and supported the gold prices. Today, the course of trading will be affected by the news on orders for durable goods (12:30 GMT). Gold demand from investment funds is low and investors are waiting for the Fed's statement monetary policy on Wednesday. This statement would lead to strong price movement. We forecast a drop in prices in the near future.
The price of Light Sweet crude oil has continued to decline amid the maintaining excess oil on the market, which is about 2.0-2.5 million barrels per day and may lead to an increase due to the growth of oil supplies from Iran, after the lifting of sanctions. It should be noted the negative impact of weak data on China's manufacturing PMI, which fell to 48.2 against the forecast of 49.8. We recall that China is the world's second largest oil consumer after the United States. We expect a continuation of a downward price movement in the near future, but in the near future may see a correction in prices. Our medium-term outlook remains negative.