19.07.2016 - The interest in gold continues to decline
The price of gold continues to consolidate after the recent correction. It is worth noting that the demand for defensive assets is gradually decreasing against the background of positive macroeconomic statistics from the US and reduction of the fear associated with the exit of the UK from the EU. It is worth noting that on next week will be a meeting at which the Federal Reserve is likely to leave interest rates unchanged, but may announce an intention increase before the end of the year, which will be negatively displayed on the precious metal. Today, it is worth paying attention to the data on the housing market in the US (12:30 GMT). Our medium-term outlook remains negative.
The price of Light Sweet crude oil continues a negative dynamics against the background of the expected growth in oil reserves due to lower demand from refineries. In addition, the resumption of oil supplies from Canada and Nigeria, as well as the increase in production in OPEC countries will continue to have a negative impact on price of black gold. It is noteworthy the increase in drilling activity in the US, which indicates the change of dynamics in the industry after a prolonged reduction in the number of active drilling rigs. Our medium-term outlook for oil remains negative and we expect a further decline in prices, but do exclude a temporary upward correction.