27.07.2016 - The statement of the Fed will likely lead to a strong movement of gold
The price of gold is consolidating before today's publication of the Fed statement on monetary policy (18:00 GMT). On the market is expected that interest rates will remain in the range of 0.25-0.50%, but at the same time a strong influence on the dynamics of trading will have the rhetoric of the US central bank. In the near future a strong influence on the demand for defensive assets will have the dynamics of stock indices, and if they fall, the interest in the precious metal will resume. In addition, the negative impact of the UK’s exit from the EU will support interest in gold. Our medium-term outlook remains positive, and we expect a rise in volatility today.
The price of Light Sweet crude oil has corrected slightly after the recent decline. Today, the focus will be on the statistics on oil and petroleum products as well as the volume of production in the USA (14:30 GMT). It is worth noting that the Fed's statement on monetary can lead to a strong change in the dollar price, which will be also displayed on the oil quotations. Oversupply of oil and concerns about weak growth in demand will continue to put pressure on the quotes. We maintain our medium-term negative outlook and the continuation of the current dynamics in the near future, but we want to note the increase in the probability of upward correction in the near future.