14.07.2016 - Volatility on commodity markets will be increased
The price of gold corrected down on the background of fixing of positions by investors, as well as in connection with the updating of historic highs in the US stock markets. It should be noted that the expected easing of monetary policy in the UK, Eurozone and Japan, as well the forecast of saving the Fed interest rates at current levels will support interest in the precious metal before the end of the year. Today, the dynamics of trading will affect the Bank of England's monetary policy decision (11:00 GMT). We expect the resumption of demand for defensive assets in the near future and maintain a medium-term positive outlook for gold, despite a likely continuation of the current correction in the near future.
The price of Light Sweet crude oil fell against the background of statements by the International Energy Agency on the fact that the excess of supply on the market will restrain the rise in oil prices. In addition, yesterday in the United States was published data on crude oil inventories, which fell by 2.5 million barrels against an expected decline of 2.3 million barrels. Strong influence on the dynamics of prices will have data on industrial production and the growth of China's GDP. Experts predict a decline in import volumes in China in the coming months due to the completion of the formation of strategic reserves in the country. Our medium-term outlook for oil remains negative.