13.07.2016 - Traders are waiting for the US data on oil inventories
The price of gold showed a decrease after in the UK, it was decided on the new prime minister who will be Theresa May, that advocated the preservation of the country in the European Union. It is worth noting that the reduction of risks associated with the effects of the UK exit from the EU weakened the demand for defensive assets. In addition, interest in gold has fallen in connection with updating historic highs of broad US stock index S&P500. This week on the dynamics of trading will affect the data on the growth of China's GDP in the second quarter and inflation in the United States. According to our estimates, the US dollar strengthening and saving of significant risks on the market will contribute to the growth of gold in the medium term.
The price of Light Sweet crude oil showed strong growth against a background of strengthening of US dollar, as well as in connection with the supply disruptions from Nigeria and Iraq. Today quotes decrease within the correction due to the fixation position, as well as on the background of the expected publication of statistics on the US oil and petroleum products inventories (14:30 GMT). According to forecasts, Canada and Brazil will continue to increase the volume of oil production, while Mexico, Norway and the United States will show a decrease in crude oil production. The growth of supply from OPEC countries will continue in 2017, but this year is likely to achieve a balance of supply and demand of oil. We maintain our medium-term negative outlook and expect the decrease in prices in the near future.