The price of gold continues to fall against the background of increased probability of the Fed raising interest rates during the next meeting of the Federal Open Market Committee, which will take place in June. In addition, the stimulus for the yesterday's fall was the data on new home sales in the US, which rose to its highest level since 2008 and totaled 619 thousand against 531 thousand in March. Investors are waiting for the publication of the preliminary data on the US GDP growth in the 1st quarter that will be released on Friday. Our medium-term outlook for gold remains negative with the potential fall to 1100 dollars per troy ounce, but in case of a substantial correction on the stock markets, the demand for gold as a protective asset will rise.
The price of Light Sweet crude oil showed growth against the background of an expected decline in US oil inventories (14:30 GMT). To continue the upward momentum is needed a strong boost. It is worth noting the growth of supply from Canada, Libya and Nigeria after recent failures. Iran and Iraq are going to continue to increase its oil production. The meeting of representatives of the OPEC countries will take place on June 2 and despite the low likelihood of a consensus on limiting the volume of oil production, we expect to see a strong movement against the background of price speculation on the subject. Our forecast for next week remains negative with a potential fall by 15-20% within the correction.