The price of gold continued to decline against the strengthening of the US dollar, due to the anticipation of the publication of positive statistics on the labor market in the US (12:30 GMT). In case of strong employment data, the US dollar will continue to grow, and the probability of the Fed raising interest rates this year will grow, which lowers the attractiveness of gold compared to Treasuries in the United States. The following week, on the dynamics of trading will affect the data on the trade balance in China, improvement of which will cause reducing of the price of gold. Our medium-term outlook remains negative, but the likely fall on the stock markets will keep demand for the precious metal as a protective asset.
The price of Light Sweet crude oil could not continue to grow after came close to the local maximum. The reason for the sharp rise in prices was to forest fires in Canada that threaten oil supplies from the region of the oil sands, as well as fighting in Libya, which also has led to the disruption of oil supplies from the country. Support for oil also was the reduction in the volume of oil production in the US to 8.825 million barrels per day, compared to 8.938 million barrels per day in the prior period. Given the saving of excess of oil supply on the market due to higher production in the OPEC countries, we expect a drop in prices in the coming weeks.