Geopolitical tensions in the Persian Gulf will have a positive impact on the cost of oil. The after an attack on two oil tankers in the Gulf of Oman stoked fears of a new confrontation between Iran and the United States. D. Trump has accused Iran of the attack on the tankers. The United States will strengthen sanctions against Tehran. Saudi Energy Minister Khalid al-Falih said o that he hopes oil producers will be able to balance the oil market before next year. OPEC was close to agreeing to extend a pact on cutting oil supplies beyond June, although more talks were still needed with non-OPEC countries that were part of the production deal.
Trading recommendation: Buy 61.00 and take profit 64.55.
Investors are expecting Federal Reserve interest rates to fall on July 31 and September 18. This is a positive signal for the U.S. stock market! Lower interest rates of the Central Bank reduce the cost of loans. Large corporations will always use the credit in your business. Low interest rates on loans will allow companies to increase net profit. The increase in shareholder profits has a positive impact on the capitalization of the business. The S&P500 may consolidate above the psychological level of 2900 this week.
Trading recommendation: Buy 2879 and take profit 2913.
The precious metal has set a fresh high for the last twelve months. We are expecting a decline in the value of gold for two reasons. The first reason is the bullish trend in the stock markets. Investors sell's gold during periods of bullish trend in the stock markets. The second reason is the high value of the gold/oil ratio. This figure is at 21.85. The normal ratio is at around 17. Precious metal is expensive now. We are expecting a decline in gold prices by 1-2% this week. Gold is a hedge for investors in times of economic and political troubles. This factor will support gold in the psychological level of 1300.
Trading recommendation: Sell 1355 and take profit 1320.