23.08.2016 - Traders fix long positions in oil
The price of gold continues to consolidate amid expectations of speech by Fed’s chairwoman Janet Yellen on economic symposium in Jackson Hole, where may be announced the plans on the timing of the Fed raising interest rates, which is negatively displayed on the price of gold, which will be less attractive in case of monetary tightening. It should be noted that the correction is likely to increase the interest in defensive assets like gold on stock markets. Our medium-term outlook remains positive and we forecast growth in the near future.
The price of Light Sweet crude oil has continued to fall against the background of the revaluation of the probability of reaching a consensus on the freezing of production volumes by a number of oil producers including Russia and OPEC countries. The fall has intensified against the background of the closure of long positions after strong growth in the beginning of August. Tomorrow will be published important data on US oil inventories. Speculation regarding the meeting of oil producers in Algeria, which will be held in late September, will keep volatility at a high level, but maintaining the imbalance of supply and demand as well as growth in drilling activity in the US are the reasons for the further reduction of prices in the medium term and the near future.