31.08.2015 - Oil rose on fixing positions

The price of gold is increasing after a strong downward correction in the previous days. It is worth noting that the demand for the defensive assets fell after investors have overestimated the risks associated with the fall of the Chinese stock market. In addition, at the economic symposium in Jackson Hole, most of the Fed officials noted the high probability of the Fed raising interest rates this year, which will be negatively displayed on the value of gold. Strong influence on the course of trading tomorrow will have news on business activity in the manufacturing sector in China. In case of weak data, the gold demand may rise. We expect the price increase in the near future and expect a high level of volatility.

The price of Light Sweet crude oil continues to correct upwards after a strong decline in the previous week. The main reason for the growth was the closure of short positions. In addition, investors fear disruptions in oil supplies due to the Erica storm in the Gulf of Mexico. The main factors that negatively affect the price of oil is still an excess of oil supply in the market and fears of slowing growth in oil demand due to concerns about the prospects for the Chinese economy, which is the world's second largest oil consumer after the United States. The number of active oil rigs in the United States rose for the sixth straight week. We assume continued upward price correction in the near future, but the medium-term outlook 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.