The price of gold has shown strong growth amid the weakening of the US dollar, despite the strong data on US labor market. It is worth noting that investors highly assess the chance of the Fed raising interest rates and now their attention has shifted to how fast will be conducted tightening of monetary policy in the United States. According to the head of the Fed, the regulator will carry out an increase in interest rates at such a pace that it will not harm economic growth. Demand for gold continues to remain high in China, due to seasonal factors. In case of the correction on the stock markets, interest in gold will rise among investors. The situation in the coming weeks will remain uncertain.
The price of Light Sweet crude oil showed a decline on Friday after OPEC decision to increase oil production quotas to the level of 31.5 million barrels per day, compared to 30.0 million barrels a day before. It is worth noting that this move equalized the level the actual output with official quotas. Demand for oil cartel is about 30.5 million barrels a day and may grow to 30.8 million barrels in next year. Support for oil will be the likely increase in strategic oil reserves in China to 70-90 million barrels per day. Investors are waiting for the lifting of sanctions against Iran and then after three months, the increase in supply on the part of the Islamic Republic will grow by 1 million barrels a day. We see no reason for the growth of oil prices in the near future and maintain the medium-term negative outlook with the potential of fall to 38 and 35 dollars per barrel of oil.