The price of gold corrected after steady growth of quotations on the background of tighter credit conditions in China, which led to the fall of local markets. In addition, the demand for gold from investment funds continues to grow due to increased interest in defensive assets. At the moment gold looks more attractive than Treasury bonds, the prices of which are near historic highs. Today, the dynamics of the price will be affected by the data on the labor market and retail sales in the US (13:30 GMT). Given the concerns about the future growth of US stock markets, we keep positive medium-term outlook.
The price of Light Sweet crude oil continues to fall after OPEC again lowered its forecast for oil demand of the cartel to 28.9 million barrels, which is 1.1 million less than the current OPEC production quotas. Negative for the market have also been the news about the growth in US oil inventories by 1.5 million barrels. Despite the claims of some experts, the production of shale oil continues to grow. It is worth noting the negative effect of the weak economic indicators in China and Japan. We see no reason to change the negative trend and the growth of quotations is possible only within the correction. We recommend holding short positions with the closest target at 60.00 dollars per barrel and maintain a medium-term negative outlook.