25.08.2016 - Gold falls amid speculation about the Federal Reserve raising interest rates

The price of gold fell amid speculations regarding the growth of probability of the Fed raising interest rates in September or December, which is caused by a number of statements from Fed officials. Investors are waiting for the speech by Fed’s chief Janet Yellen at the annual symposium in Jackson Hole, at which have been repeatedly voiced important statements about the Fed's monetary policy. It is worth noting that in case of fall on the equity markets the demand for defensive assets will rise, but the increase in interest rates will put much pressure on the quotes. Our medium-term outlook remains positive, and we expect strong volatility in the near future.

The price of Light Sweet crude oil showed a decrease after in the US has been published data on oil reserves. Thus, the figure rose last week by 2.5 million barrels against the forecast of decline by 0.5 million barrels, which underlines continued oversupply on the market. It is worth noting that investors do not expect a consensus among the major oil producers like OPEC countries, Russia and the other at a conference in the end of September, which will be held in Algeria. The rise of drilling activity in the US and increase in production in the OPEC will put pressure on share prices in the near future. Our medium-term outlook remains negative and we expect a fall in the near future.

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