10.05.2016 - Wildfires in Canada reduce its influence on oil prices
The price of gold continued to decline against the strengthening US dollar. Investors fix long positions due to lack of drivers for further growth in the price of the precious metal. It should be noted that previously the president of the Federal Reserve Bank of Chicago Charles Evans said about solid growth of the US economy, which increases the likelihood of the Fed raising interest rates this year. Investors are waiting for the publication of the report in the US retail sales on Friday. It is worth noting the growth of the gold reserves of China's central bank from 57.79 million ounces at the end of March to 58.14 million ounces at the end of April. Our medium-term outlook for gold remains negative, but if the stock markets will fall, the demand for gold will increase.
The price of Light Sweet crude oil is corrected after recent gains. It should be noted that the improvement of the situation with forest fires in Canada, will put pressure on oil in the near future. In addition, the new oil minister, Khalid al-Falih announced his intention to continue the current policy regarding the supply of oil, indicating a further increase in the volume of supply in the market. Tomorrow in the US will be published data on oil reserves that can greatly affect the dynamics of prices. Our medium-term outlook remains negative.