The price of gold rose sharply amid growing tensions in Iraq. In addition, investors expect the meeting of the presidents of Ukraine and Russia in Minsk, which can lead to an improvement of the situation in the east of Ukraine. Weak labor market statistics, which showed a decrease in the number of new home sales to 412 thousand in July, compared with an expected 426 thousand, resulted in the weakening of the dollar, which also supported the price of gold. We expect growth of the price of gold with the closest targets at 1320 and 1350 and save the medium-term positive forecast.
The price of the American benchmark Light Sweet crude oil continued to decline despite the rising tensions in Libya, where Islamists have captured the airport in the capital. The volume of oil production in Libya last week, rose again and reached 612 thousand barrels, compared with 1.4 million barrels last year. The course of trading today can be affected by the data on consumer confidence in the United States, as well as the outcome of the meeting of the Presidents of Ukraine and Russia, which can reduce or increase the level of geopolitical tensions in the world. We maintain the medium-term negative outlook for oil, but note the reduction in the potential for further decline.