06.07.2016 - Demand for gold continues to grow

The price of gold continued to show a positive trend against the background of increased demand for defensive assets due to investors' concerns about global economic growth, which strengthened after the referendum on the UK's membership of the EU. The worsening outlook for growth in the EU economy and a possible easing of monetary policy by the central banks of the euro area, the UK and Japan will support the interest in the precious metal in the near future. Our medium-term outlook remains positive with the likely achievement reaching the level of 1400 dollars per troy ounce in the near future.

The price of Light Sweet crude oil showed a strong decline due to concerns about a slowdown in the world economy, which will reduce the growth in demand for oil. On the other hand the growth of the number of active rigs in the United States, as well as the activation of the investment activities of a number of large corporations suggest a further increase in the volume of oil production in the world. We forecast a drop in the medium term, but today we can see a short-term correction.

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