The price of gold corrected upward after a sharp decline yesterday. A drop in prices was caused by the news on an agreement between the presidents of Ukraine and Russia to facilitate the process of the cease-fire in eastern Ukraine. Correction was caused by a decrease of the dollar against the weaker data on factory orders, which in July rose by 10.5%, which is 0.4% less than the forecast. Today, in the focus will be a meeting of the ECB, which may announce new measures to fight the low inflation. The course of trading may also affect the news from the summit of the NATO countries, where may decide to support Ukraine. We maintain our positive medium-term outlook for gold.
The price of Light Sweet Crude Oil rebounded from the levels of from a local minimum due to the weakening of the dollar, news on a possible ceasefire in eastern Ukraine and in the expectation of data on the labor market in the United States today and tomorrow, as well as statistics on oil inventories in the United States (15:00 GMT). Demand for oil in Europe remains weak, and today's decision by the ECB on monetary policy can improve the outlook for economic growth in the region, which will positively be displayed on the demand for oil. We maintain a medium-term negative outlook for oil, but admit the possibility of a sharp rise in case of deterioration of the geopolitical situation in the world.