The price of gold continues to consolidate after the sharp fall in the previous weeks caused by the strengthening of the dollar amid rising probability of the Fed raising interest rates. The tightening of monetary policy in the United States was negatively displayed on the attractiveness of investing in gold, compared with fixed income assets. In addition, the rise on the stock markets and reduced fears about the Chinese economy led to a drop in demand for safety assets like gold. Support for gold in the near future will be an increased demand in India and China, which is caused by the holiday season. These two countries together consume more than half the world's gold. The situation at the moment uncertain, and we are waiting for new signals on gold.
The price of Light Sweet crude oil continues to decline gradually on the background of saving excess of supply of about 1-2 million barrels a day. Oil production in the US is now below the level of 9.2 million barrels a day against this year highs at 9.6 million barrels per day recorded in April. Today, in the focus of investors will be the publication of statistics on oil and oil products (16:00 GMT). Growth of inventories to levels close to the maximum and the expectation of increasing the supply of oil from Iran after the lifting of sanctions will keep quotes at low levels. We maintain a medium-term negative outlook with a target near 40 dollars per barrel.