Heroes of Ukraine

«Market Leader» - news and previews making you rich.

Friday, 25 May 00:33 (GMT -05:00)



Stock and commodities markets

Что будет с золотом в марте?


What should we expect in the global market of gold in March? Some experts decided to share their forecast.

They remind us that gold has been good at exceeding investors’ expectations. In particular, they used to expect the price of a troy ounce of gold to stay somewhere in the $1300-1350 range in the first quarter of the year. However, gold moved above $1360/oz in January. This has been the highest level since August 2016. After retracing slightly back, the price came close to this local high again in mid-February.
 
The reason behind this gold rally is easy to identify. The thing is that gold went up as the U.S. Dollar went down. Those 2 assets have a negative correlation most of the time. Is gold going to behave the same way through the rest of March? When it comes to answering this question, some experts seriously doubt this.

First of all, the newly-appointed Chairman of the Federal Reserve promised to keep on raising the interest rate. The nearest Fed meeting is about to take place this month. Secondly, Trump’s tax reform is expected to boost the economic growth in the USA. The amount of new jobs has already been growing for a couple of months, amid decreased employment and inflation.
 
All of that has been stimulating consumption and favoring a stronger dollar. Like we mentioned earlier, the U.S. Dollar and gold have a negative correlation, which is why a stronger dollar won’t let gold raise even higher. Even staying in the mentioned $1300-1350/oz range will be a big achievement for gold, given the current and future situation.
 
However, they say that the long-term bias is bullish for gold. The thing is, the major downtrend last for 6 years and stopped last year. So, eventually, gold will get more expensive.

 

 


 

 

You are free to discuss this article here:   forum for traders and investors

 

Add to blog
Got a question? – Ask it here »
 

USA Outpaces Russia to Become World’s Biggest Oil Producer

In March 2018, the United States outpaced Russia in terms of oil production. This means that the USA is now the biggest producer of crude oil in the world.

Publication date: 24 May 11:26 AM

Crude Oil Goes Above $80/b, Morgan Stanley Improves Oil Forecast

On Thursday, May 17th, Brent oil exceeded $80/b for the first time in 3,5 years. The last time the price reached this level was on November 25th, 2014.

Publication date: 17 May 11:20 AM

Oil Prices At $79/b, Russian Ruble Still Weak. Why?

On Tuesday, May 15th, Brent oil reached $79/b. Strange as it may seem, the Russian Ruble hasn’t reacted to this so far, even though this always has been a positive sign for Russia’s national economy and currency heavily reliant on crude oil prices. Moreover, the currency has been going slightly down for a while despite being backed by higher oil prices.

Publication date: 15 May 01:19 PM

Russia Isn’t Interested In OPEC+ Anymore

Right in advanced of the forthcoming OPEC+ summit some experts doubt that Russia is still interested in the agreement. The strategic objectives of the OPEC+ deal are almost reached. The imbalance in the global oil market has almost been eliminated. The cost of a barrel of Brent oil has increased by more than 100% since late 2016. At this point Brent oil is trading above 70 dollars per barrel. On Q1 2018, the OPEC made 400 million dollars a day more than 12 months before.

Publication date: 28 April 07:57 AM

Who Loses and Wins from Oil Prices At $70/b?

High oil prices have two sides of one coin. On the one hand, while oil producers are  benefiting from today’s oil prices over $70/b, this seems to be  creating an extra pain for oil consumers worldwide. What exactly has been happening to oil-producing economies?

Publication date: 28 April 06:10 AM

American Oil Export to Europe Quadruples Thanks to OPEC+

As predicted by many experts, the OPEC+ agreement has been favoring American shale oil producers. The export of American oil to Europe has quadrupled. The thing is that the agreement between the OPEC and Russia-led non-OPEC oil producers pushed oil prices high enough to make American shale oil production profitable again.

Publication date: 26 April 05:26 AM

Russian Oil Production Is About To Peak and Start Declining in the Near Future

According to Finanz, with reference to the International Energy Agency, Russia has been benefitting from its oil production and export for decades. However, this is about to change in the future since the Russian oil industry is about to see its production peak, which means it will inevitably start going down further down the road.

Publication date: 16 April 05:31 AM

US-China Trade War Drops Oil Prices

The trade war between the United States and China is underway. Yet, it has already led to some consequences. For example, international experts say that this war has been the reason for the current weakness of the global market of cryptocurrencies. At the same times, Finanz experts claim that this trade war has dropped oil prices.

Publication date: 06 April 01:09 PM

USA Almost Doubles Oil Export in 2017

In 2017, the United States’ oil export reached 1,1 million barrels on average, which is almost twice as much as exported in 2016. These figures are confirmed by the EIA.

Publication date: 30 March 12:49 AM

OPEC+ Conditions May Get Tougher

The participants of the OPEC+ deal have recently discussed the efficiency of the deal. Having discussed the results, they decided to change a range of criteria. To do so, they may well have to extend the OPEC+ deal, Bloomberg reports.

Publication date: 28 March 08:46 AM