07.09.2016 - Gold rises amid weak US data

The price of gold has shown strong growth after American investors returned to the market after a long weekend in the country. Among the reasons for the decline was release of statistics on the US labor market, which has disappointed investors, as well as data on the services PMI in America, that fell to 51.4 in August from 55.5 in July. Growth strengthened against the background of short-covering. According to our estimates, the stock markets will begin a significant correction in the coming weeks or months, which will increase the interest in gold as a safe asset. On the other hand, we expect increased volatility due to speculation on the Fed raising interest rates this year. Our medium-term outlook remains positive, and the current positive momentum can continue in the near future.

The price of Light Sweet crude oil is moving in a downtrend. Volatility of prices in September will be higher due to speculation regarding the negotiations of a number of major oil producers at the energy summit in Algeria on 26-28 September. According to our forecasts, OPEC countries, Russia and others will not be able to agree on a freezing of oil production. Investors' attention is traditionally focused on the United States statistics on oil reserves that will be published tomorrow. Our medium-term outlook remains negative with a potential reduction up to 40 and 36 dollars per barrel.

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