29.07.2016 - Oil may fall to 40 dollars a barrel
The price of gold showed a rise in volatility today against the background of statements by the Bank of Japan, which made the decision not to cut rates from the current level of 0.10%, but expanded program of dollar lending to 24 billion from 12 billion previously. It should be noted that the reason for the latest increase was the Fed's decision to leave interest rates unchanged and the absence of a signal on the timing of future monetary tightening. The high level of volatility will continue today against the publication of important statistics for GDP growth in the Eurozone (09:00 GMT) and the US (12:30 GMT). Our medium-term outlook for gold remains positive due to the expected increase in demand for defensive assets in the case of a fall on the stock markets.
The price of Light Sweet crude oil is still declining on fears of investors associated with excess of oil, which increased due to the expected increase in the volume of shipments from Libya and Iraq. Demand for gasoline in the United States remains relatively low, in spite of the season of road trips, which will last until September. The resumption of growth in drilling activity in the US, also adversely affect the prospects for growth of oil. Our medium-term outlook remains negative, but in the near future we expect a rebound amid the fixing positions after a strong decrease in the last few weeks.