The price of gold continued to decline after the publication of minutes of the previous meeting of the Federal Reserve, in which was noted a decrease of deflationary risks for the American economy and was discussed the possibility for the earlier rise in interest rates. Hopes for a quick end of the conflict in the east of Ukraine also put pressure on the price of metals. Decline in gold prices increases the demand for it from consumers of physical gold that can stop a further fall. Today, a rise in volatility is expected after the statement by the Fed chairman at the conference in Jackson Hole (14:00 GMT). We maintain our positive medium-term outlook for gold, but allow further reduction in prices in the near future.
The price of American Light Sweet crude oil corrected yesterday after the release of positive data on the growth of sales on the secondary market of the United States to 5.15 million in July, compared with an expected 5.01 million, indicating the improvement in consumer sentiment, which should lead to increased demand on petroleum products. The future direction of oil prices will depend on the statements of the head of the Fed today at 14:00 GMT. Given the weak growth in demand and an increase in oil production, we maintain a negative medium-term outlook with the target near 92.00 dollars per barrel.