The price of gold started the correction after investors decided to take profits after reaching a 15-month high around the psychologically important mark of 1300 per troy ounce. In addition, the negative impact on the course of trading has the strengthening of the US dollar before the publication of an important US labor market report for April. It should be noted that a correction on the stock and commodity markets will lead to increased demand for defensive assets like gold. We expect gold to continue falling in the second half of the year, but in the near future the quotes will probably continue to move above the level of 1200 dollars per troy ounce.
The price of Light Sweet crude oil declines due to the strengthening of the US dollar, as well as fixing positions after unreasonably strong growth in previous weeks. The growth of oil production in the OPEC countries to the highest level since 1989, will compensate the likely reduction in US oil production by 700 thousand barrels per day this year. In addition, US crude stocks remain at a high level. Statistics on inventories will be published today at 14:30 GMT. We expect a substantial correction in oil prices after the recent speculative growth and forecast a drop in the coming months.