29.01.2016 - Oil prices continue to show strong movements

The price of gold corrected downward after the recent growth for a few days, which was caused by the expectation of softer Fed rhetoric about further increases in interest rates. As a result, these expectations were met and investors fixed positions. Today, the key event will be the publication of the preliminary report on the growth of US GDP in the 4th quarter. In case of poor results, the demand for defensive assets like gold will grow and upward trend in prices will continue. On the other hand the improvement of sentiment on the stock markets will lead to lower prices for gold. We expect increased volatility today and look forward to continued growth in the near future.

The price of futures on Light Sweet crude oil yesterday showed rapid growth after the Russian energy minister said on a possible agreement with the OPEC countries on the reduction of oil production by 5%, but this was denied by the representatives of OPEC. At the moment, investors are trying to assess the possible time to achieving the balance of supply and demand on the market and the impact of the excess of supply of oil on the market is less important than before. We do not expect reaching the consensus between the countries of OPEC and other major oil producers, but this topic will lead to a lot of speculation that will lead to increase of market volatility. Our medium-term outlook for oil remains negative.

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.