The price of gold continues to grow steadily against the background of continued growth in demand for defensive assets. The fall on the stock markets have traditionally led to an increased interest in defensive assets including gold. At the same time in such periods yield of investments in the Treasuries is reduced, which is also displayed on the precious metal price. Over the last year the price was under the pressure of expectations of the Federal Reserve raising interest rates, but the probability of the Fed tightening monetary policy in the coming months decreased due to the instability in the financial markets. Today, the price dynamics will affect the US retail sales data (13:30 GMT). Current gold growth may continue in the near future, but the probability of a downward correction increased.
The price of futures for US benchmark Light Sweet crude oil show corrective upside movement after a sharp fall in the previous days. Speculation on a possible consensus on the reduction of oil production among major manufacturers have a short-term influence and we do not expect reaching a real agreement on the issue. According to experts the decline may continue until the level of 20 dollars per barrel. Oversupply and rising inventories, the weakening in growth of demand for oil will not push its price in the near future and medium term.