19.09.2016 - Drilling activity in the US continued to grow
The price of gold showed a decrease after was published an important data on consumer price inflation, which has accelerated the growth to 1.1% in August in the US, compared with 0.8% in July. In August the index rose by 0.2%. The reason for the increase was the rent and health care costs. It should be noted that the acceleration of inflation of the Fed stimulates new steps for the normalization of monetary policy, on the one hand reduces the attractiveness of gold compared to fixed-income assets, and on the other increases the demand for defensive assets such as gold. The central event of this week will be the statement of the Fed on monetary policy on Wednesday and despite the low likelihood of interest rate increases, the probability of such a move by the end of the year may grow significantly. Our medium-term outlook for gold is positive, despite the risk of falling in the near future.
The price of Light Sweet crude oil fell on Friday amid a stronger US dollar, as well as the publication of the service company Baker Hughes data according to the report that the number of active oil rigs rose by 2 units to 416. Today we see a correction of prices in connection with the fixation positions, statement of Venezuelan President about the likelihood of achieving consensus during negotiations of OPEC countries and other major manufacturers to freeze oil production at an energy conference in Algiers on 26-28 September. It should be noted that the supply from Nigeria and Libya is likely to increase, despite the clashes in Libya. Our medium-term outlook remains negative and we expect strong price movements in the coming weeks.