The price of gold continued to rise amid the weakening of the US dollar against the euro to its lowest level in six weeks. It should be noted that the correction concerns on the US stock market increases the demand for defensive assets such as gold. Weak US GDP growth of 1.2% in the second quarter reduces the likelihood of the Fed raising interest rates this year. Strong influence on the course of trading this week will have data on the US labor market, which will affect the market expectations on the timing of the Fed raising interest rates. Our medium-term outlook for gold remains positive on the background of the expected drop on the US stock market.
The price of Light Sweet crude oil continued to decline and may fall below the psychologically important level of 40 dollars per barrel. The main reason for the decline is the excess of supply on the market. It is worth noting that the volume of production in OPEC continues to grow, and drilling activity in the US has increased against the background of improving the efficiency of oil producers. Today, the focus will be on the data on US oil inventories (14:30 GMT). After a long-term decline there is a probability of price correction. Our medium-term outlook remains negative.