The price of gold shows a steady growth on the background of increasing demand for the metal from consumers in China and India. It is worth noting that gold consumption in Asia traditionally grows in autumn and winter due to the holiday season, during which the demand for jewelry rises. The probability of rising interest rates in the US is partially taken into account in the price of gold and investment demand for gold is maintained in connection with the fall on the US stock markets. In the near future we will probably see a consolidation of the price to the levels of about 1120-1165 dollars per troy ounce. To determine the medium-term direction of price movement, we are waiting for the results of the meeting of the Federal Open Market Committee of the US Federal Reserve.
The price of Light Sweet crude oil showed a strong growth and has stabilized around the level of 48 dollars per barrel, driven by positive statistics on US GDP growth by 3.7% in the second quarter and easing of concerns about the crisis in China. Strong growth is also due to short covering. According to our estimates, the decline resumed in the near future, but its potential is decreased. Our medium-term outlook remains negative amid the persistence of excess of oil on the market.