Gold and Oil

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Gold hits 3-month high / Oil price is falling

Gold hits three-month high on Monday. Due to weak US-macro data, analysts expect the Federal Reserve to remain interest rates low. An increase in rates would raise the opportunity cost of holding non-yielding gold bullions, while boosting the dollar, in which they are priced.

The price of Brent crude oil is falling on tuesday below $66 a barrel as the dollar strengthened and on evidence of ample supplies of Middle Eastern oil despite wars in northern Iraq, Syria and Yemen. Analysts report, that the oil market is generally oversupplied with high Saudi exports and that OPEC is unlikely to cut production. Hence it is expected, that the oil price won’t gain momentum in the near future.