The price of gold has shown growth despite the positive trend on the US stock markets against the backdrop of rising oil prices and increase on the stock markets in China, due to the expected stimulus measures by the Chinese authorities. It is worth noting that gold demand traditionally increases in the second half of the year due to the holiday season in China and India, which are the largest consumers of gold in the world. Investment demand is supported by the high level of uncertainty about the growth prospects for the global stock markets, as well as the expectation of important economic symposium in Jackson Hole in which will take part representatives of the central banks, which will be held next week. Today, it is worth paying attention to data on inflation in the US (12:30 GMT), which greatly affect investors' predictions about the timing of interest rate increases. Our medium-term outlook for gold remains positive.
The price of Light Sweet crude oil continued to rise amid speculation regarding a possible consensus on the freezing of oil production among OPEC countries and Russia. We expect the failure of these negotiations in connection with Iran's desire to continue to increase the volume of production from the current level of 3.65 million barrels per day in July. It is worth noting that the season of trips to the United States comes to an end and we can see the acceleration of growth in US oil inventories. On the trading dynamics today may affect data on US industrial production (13:15 GMT). Our medium-term outlook remains negative due to oversupply, and volatility will rise tomorrow after the publication of news on the US oil inventories.