08.06.2016 - The interest in gold continues to rise

The price of gold continued to rise due to lower gold prices, as well as on the background of confidence growth in the Fed keeping interest rates at previous levels in the near future. This fact reduces the pressure on gold, because the tightening of monetary policy will reduce the attractiveness of gold compared to the assets that generate interest income. Today, the dynamics of trading will influence the data on the number of vacancies on the US labor market (14:00 GMT). Considering the approach of the American stock indices to all-time highs, we expect them to correct in the near future, which will increase the interest in defensive assets such as gold. On the other hand until the end of the year, we expect the price of gold to decline on the background of the expected rise in the US dollar and rising interest rates.

The price of Light Sweet crude oil continued to grow and reached its highest level since the beginning of the year. It should be noted that the reason for this growth is the disruption of oil supplies from Canada, Libya, Venezuela and Nigeria. These factors are temporary and delivery from Canada is renewed, but in Nigeria are continuing attacks by militants on oil infrastructure. It is worth noting that in the US the number of active drilling rigs began to grow, and this trend may continue in case of saving the current price levels. The dynamics of trading today will affect the data on oil inventories (14:30 GMT). Our forecast for the near future remains negative amid expectations of price correction.

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