20.07.2015 - The price of gold fell after the news about the gold reserves of the People's Bank of China

The price of gold showed a strong decline against the backdrop of several factors. Thus, the increased likelihood of the Fed raising interest rates in September, due to the positive statistics on the consumer price index in the United States, which increased by 0.3% in July and strong data of housing starts in the United States to 1.17 million that was 0.07 million better than the forecast. The main reason for the drop in prices was the publication of a report on the gold reserves of the People's Bank of China for the first time since 2009. Thus, the gold reserves totaled 1658 tons against 1054 tons in April 2009. Analysts estimated gold reserves at around 3000 tons. We expect increased volatility in gold prices in the near future amid speculation on stocks of gold in the country. We expect that the demand for gold will rise in the near future.

The price of Light Sweet crude oil is consolidated around the level of 51 dollars per barrel. The dynamics of prices at the moment is affected by a number of factors. Thus, a negative for the stock is the strengthening of the US dollar, maintaining an excess of oil on the market, which according to analysts is about 2.5 million barrels, and the lifting of sanctions against Iran, which according to the experts’ predictions will increase the supply of oil on the market by 700 thousand barrels per day for the year. On the other hand the number of active rigs in the US fell last week by 7 to 638, and the stop of production at the British field Buzzard, at which is extracted 170-180 thousand barrels supported quotations of oil. We expect a drop in oil prices in the medium term.

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