18.07.2016 - The price of oil is corrected upwards

The price of gold continued to consolidate after the increase in volatility on Friday, which was associated with an attempted coup in Turkey. At the moment, investors demand for defensive assets gradually declined against the publication of strong data from the US, where retail sales rose last month by 0.6%. The focus remains on the data from the UK, the economic condition of which is a key factor that will affect the mood of investors in the coming months. We expect a further correction of the gold price, but our medium-term outlook remains positive.

The price of Light Sweet crude oil has shown growth on Friday amid fears of oil supply disruptions in connection with an attempt of military coup in Turkey. In addition, support for oil became the data on the growth of China's GDP by 6.7% in the second quarter, which is 0.1% more than the forecast. At the same time, industrial production in the US has shown a strong growth of 0.6% in June, which also contributed to the positive dynamics of quotations. Growth is constrained by another increase in drilling activity in the US, which casts doubt on a further decline in US oil output. Our medium-term outlook remains negative and we expect a soon resumption of the negative dynamics.

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