02.08.2016 - Demand for gold remains elevated
The price of gold continued to rise on expectations of the Fed saving monetary policy settings at the current levels in the coming months, due to the publication of weak statistics on the growth of US GDP in the second quarter. It is worth noting that the manufacturing PMI in the US was 52.6 in July, against the forecast of 53.1, which also supported the demand for defensive assets such as gold. The main event of this week will be a report on the US labor market in July. In case of strong statistics on employment, the price of gold will decline. Today, it is worth paying attention to the data on personal income and consumer spending (12:30 GMT). Our medium-term outlook for gold remains positive with a target at 1400 dollars per troy ounce.
The price of Light Sweet crude oil has continued to fall under the pressure of the news on the continuation of the drilling activity growth for the fifth week in a row, as well as on the background of oil production growth in OPEC to 33.41 million barrels per day in July, against 33.31 million barrels a day in June. Currently quotes came closer to the psychologically important mark of 40 dollars per barrel, and investors can start fixing positions, which will lead to upward correction. Tomorrow in the focus will be the news on the US oil and oil products inventories. Our medium-term outlook remains negative, but we may see a short-term price rebound.