Commodities Update 5
Gold down due to Greece EU deal / Oil price drops as Saudis raise production
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Gold down due to Greece EU deal / Oil price drops as Saudis raise production
Gold prices fell as EU finance ministers agreed on a deal with Greece. The third multi-billion-euro bailout package comes in exchange for stringent austerity measures, removing a considerable risk factor from financial markets. Considered as a safe haven investment in times of economic uncertainty, Gold responded to the news by declining sharply. According to analysts, the agreement could place significant pressure on prices in the future. Interesting development show the US-Mint. Sales of gold coins increased by 107% in the first week of July compared to that of last year.
As the OPEC expects stronger demand for crude in 2016, Saudi Arabia started to raise oil production. The released forecast expects a stronger demand for OPEC crude and a faltered supply of rival oil suppliers. Moreover the improved economic situation in the emerging markets could drive oil demand in the coming years. Nevertheless crude declined last week. The International Energy Agency (IFA) estimates a further contribution of the oil price correction.