24.06.2015 - Statistics on the US GDP growth and oil reserves will affect the price of oil
The price of gold fell against the strengthening of the US dollar, as well as the growth of the probability of reaching a consensus between Greece and the creditors, which resulted in a decrease of interest in defensive assets such as gold. Demand of the part of investment funds in the United States rose slightly, but gold consumption in China and India, which are the largest consumers of gold, remains low due to the traditional drop in this period of the year. The main factor that continues to negatively affect the price of gold is an anticipation of the Fed raising interest rates in September and December. Our medium-term outlook for gold remains positive, but in the near future is likely to continue the movement of quotations within the corridor 1170-1230 dollars per troy ounce.
The price of Light Sweet crude oil has increased, despite the strengthening of the US dollar and weak statistics on manufacturing activity in China, which is the second largest after the US consumer in the world. Thus, the index in China remains below 50.0, which indicates a reduction in the sector. The excess of oil on the market is the main factor that puts pressure on the oil quotations. On the other hand, oil production in the US is about the maximum levels, despite the reduction in the number of active drilling rigs. Today, the course of trading will be affected by the final data on GDP growth in the US in Q1 (12:30 GMT) and statistics on the change of oil and petroleum products in the US (14:30 GMT). We keep medium term negative outlook on the price of oil.