“SASCO Bank” Gold witness further decline .. The oil is affected by a slowdown in Chinese demand

Gold price technical analysis 30 - May, 2013

According to the report “SASCO Bank” that gold and two months after the trading side has seen fall further this week, with the refraction of a number of technical indicators over the past few days and the rise of the dollar, had no gold in the end only one way he had to behave.

“With the return of cash and government bonds safe to attract interest, it is easy to exit investments, high liquidity, such as gold, which helps explain why affected more than other markets, especially given that the engine market at the present time arises from the political concerns in Europe.

The report indicated that speculative investors retain the sites of long-term far less than was the case during the corrections, the former, especially compared with the “Alanhiarin big” two events in December and February, so it will keep traders eyes open on the behavior of buyers active who have supported the market in these two incidents, and trading of investors products in the stock market which saw outflows are limited in the past month.

And indicates “the first S Hansen, head of commodity strategy at the bank that everyone is talking now about the support at $ 1,500 an ounce, which means that either we will find support before that level again or we’ll examine the drop experienced in December.

And considers it necessary occurrence of this decline to re-stimulate some interest from investors, backed by those who have lost interest in late, and the big question before Iatlq whether these investors are looking to slow down as more attractive and thus will start to build centers of short-term instead.

And is likely to remain skeptical potential buyers waiting to see the result that will end this case. A return to the price above $ 1610 will be viewed favorably and may be a sign of the end of this decline.

The report pointed to a decline in Chinese demand is expected for oil in April to its lowest level in six months, a Mazar drop the first compared with the previous three years at least, pointing out that the main reason for this is due to the decline in demand refineries to perform the annual maintenance, which reinforced the general feeling that the world demand for oil is going through a temporary decline, which may continue for another two months. But the likelihood of further setbacks remain limited in anticipation of both the Organization of Petroleum Exporting Countries (OPEC) and the International Atomic Energy increasing global demand for oil later this year, in light of the increasing demand in emerging markets more than a decline in consumption in developed countries.

And reiterated Saudi Arabia and OPEC reiterated their call to cut oil prices this week to help steer the economy away from the global slowdown. Have contributed to this verbal intervention supported by the standard outputs from the organization to ease the pressure on oil prices with deflation WTI below $ 100 and approaching the average in 2011.

The International Energy Agency reported in its monthly probability of oil prices remain high due to the geopolitical tensions not resolved, despite a sudden improvement in the global supply, which led to a large inventory

He said that the price of West Texas Intermediate crude fell since May 1, 10 dollars, which could lead to a weakening of speculative positions for up to 200 million barrels, which coincides with the average for its approval during the past three years.

“In light of this must begin with the liquidity to meet the new purchases as the future of the speculation seems to be down to levels that can be managed and controlled, and the main driver behind the rise in oil prices during the first quarter was a risk geopolitical emitted from Iran, and with the continued survival of this case unresolved, the premium with the loss in the oil will not fade at the present time is needed to help stabilize prices soon. said that Brent spent most of the time during the week, reinforcing his sharp declining after the report of the U.S. labor which was released recently. after the decline in price 16 USD reached its highest price in March, and will support emerging, especially before the trend line support of the lowest levels, where he arrived in 2008, currently at 109.50 dollars a barrel.