The price of gold fell yesterday due to a drop in demand for defensive assets amid optimism associated with the Chinese market. It is worth noting that investors in times of uncertainty in the stock markets often use gold as a safe haven, but now fears on the crisis in China weakened and investors fixed position. The price is likely to consolidate near the current levels before the Fed's decision on interest rates, which will be published on September 17. Tighter monetary policy will have a negative impact on gold, but the move is more likely at the end of the year than after the next Fed meeting. We expect strong price movements in the next week.
The price of Light Sweet crude oil fell yesterday on the background of technical factors, as well as the persistence of the imbalance of supply and consumption of oil in the market. Indonesia announced the return to the OPEC in December after seven years after leaving the organization. This fact will increase the volume of oil in the organization by 800 thousand barrels per day. It should be noted that the intention of the Chinese authorities to accelerate the implementation of a number of major projects to support economic growth in the country will be positively displayed on the oil price. Our medium-term outlook remains negative, and today we are forecasting an increase in volatility in connection with the release of statistics on oil reserves in the US (14:30 GMT).