Saxo Bank’ announces forecast about oil and precious metals

Baku. 17 July. REPORT.AZ/ One of the world's leading banks in Denmark, has announced its forecast for oil, gold and silver prices this year.

Report informs, Head of Commodity Strategy at Saxo Bank Ole Hansen said:

“The second half of 2019 could see crude oil initially supported by strong demand as well as continued geopolitical risks related to supply concerns from Venezuela and Iran as the deadline for the implementation of US sanctions approaches. These concerns may, however, eventually be replaced by a shifting focus towards demand growth which could begin to slow down among emerging market economies”.

According to Ole Hansen Gold’s performance turned sharply lower during June as the yellow metal struggled to find a defense against the stronger dollar.

The deteriorating outlook during June has challenged but not destroyed our positive outlook for gold. Gold’s negative correlation to the dollar remains a key challenge in the short term, but given the short-to- medium-term dollar-negative outlook, we believe this headwind will fade over the coming quarter.

“Silver remains stuck within a narrowing trading range that has been in place for the past 18+ months. Gold, however, holds the ultimate key to silver’s direction and given our views on the yellow metal, we see silver continuing to challenge resistance before eventually moving higher”.