The price of gold yesterday showed an increase within the correction, but now resumed its decline against the background of the expected strengthening of the US dollar, as well as falling demand for defensive assets after a strong increase, which was due to the results of the referendum on the UK's membership in the EU. It is worth noting that the positive statistics in the US increases the likelihood of the Fed raising interest rates this year and supports the growth of the dollar, which is negative for gold. Current fall is likely to continue in the near future, but in the medium term fall on the stock markets as well as the negative consequences of the UK exit from the EU will maintain an interest in the precious metal.
The price of Light Sweet crude oil has continued to decline amid the pressure of oversupply of oil on world markets on investor sentiment. It is worth noting that experts point to a glut on the markets of China, Japan and South Korea, which together with the increase in US drilling activity and further increase of production in OPEC countries will have a negative impact on the dynamics of oil. The expected strengthening of the dollar also has a downward effect on the price of oil. We expect a further decline in the near future and maintain the medium-term negative outlook.