28.04.2016 - Gold rose after the Fed statement

The price of gold showed an increase after the Fed stated about saving of monetary policy settings unchanged. The positive factor for gold was the words concerning the fact that rising interest rates will be gradual. It should be noted that the uncertainty about the future growth supports demand for gold as a defensive asset in the commodity and stock markets. Today, the dynamics of trading will affect the data on US GDP growth for the 1st quarter (12:30 GMT). Our medium-term outlook for gold remains negative due to the expected rise in Fed interest rates in the second half of the year, but the fall in equity markets may lead to an increase in precious metal prices in the coming months.

The price of Light Sweet crude oil has continued to rise in spite of the statistics on the US oil inventories, which rose last week by 2.0 million barrels per day. It is worth noting the growth in oil consumption in the United States, China and India supported the bulls, but on the other hand the growth of supply from Iran, Russia and other major oil producers offset this effect and the excess of supply on the market is likely to continue in the medium term. In addition, the commodity markets in the world are overheated and growth of quotations does not meet the performance of demand and in the coming weeks may lead to the beginning of a substantial correction. Today will be published data on the growth of US GDP for Q1 (12:30 GMT), which can greatly affect the mood of oil traders. Our medium-term outlook for oil is negative and we expect correction start in the near future.

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