15.07.2016 - Gold continues to decline due to the positive news on the market
The price of gold continued to decline against the backdrop of the positive situation on the US stock markets and the successful launch of the corporate reporting season in the US. In addition, today was published an important data on the growth of China's GDP, which was 6.7% in the second quarter against the forecast of 6.6%. At the same time in June, the growth of industrial production reached 6.2%, which is 0.3% more than the forecast. Positive news reduced interest in defensive assets such as gold. Today, the dynamics of trading will affect data on the index of consumer prices in the US (12:30 GMT), the growth of which will increase the probability of the Fed tightening monetary policy this year. We forecast growth of gold in the medium term, but we can see a further drop in prices in the near future.
The price of Light Sweet crude oil continued consolidation in spite the publication of positive data on the Chinese economy. The dynamics of prices is still under pressure of the excess supply of oil on the market, which is saved on the background of supply growth from OPEC and restoring levels of export from Canada and Nigeria. Season of car trips in the United States has not led to the expected level of fuel consumption and reserves in the US continued to grow. Investors will be watching the data on drilling activity in the US, which in recent weeks shows growth. Our medium-term outlook for oil remains negative.