02.09.2016 - News on the labor market strongly affect the price of gold
The price of gold showed an increase within the correction that has been caused by fixing positions before today's publication of important labor market report in the US (12:30 GMT), and weak statistics on the manufacturing PMI in the US, which fell to 49.4 in August against 52.6 in July. This fact reinforces the concerns about the growth prospects of the US economy and has a negative impact on the country's stock market. In case of publication of a strong report on US employment, the likelihood of the Fed raising interest rates will increase significantly, which will show a negative impact on the gold price. Despite the possibility of a fall in the near future, we keep optimistic outlook for gold on the background of the expected increase in demand for defensive assets.
Futures on price of Light Sweet crude oil continued to fall after in the US was published data on the growth of oil inventories in the country. It is worth noting a decrease of speculations about the possible impact of a consensus on the coordination of number of large producers like OPEC countries, Russia and others. In the near future we see no reason for the improvement in forecasts on oil prices and we expect a further decline in the medium term, but do not rule out corrective gains in the near future.