28.06.2016 - Oil corrected after yesterday's decline
The price of gold shows a decline on a background of fixing positions after a strong growth in recent days, which was caused by the results of a referendum on the UK’s exit from the EU. The uncertainty on the markets and the growth of political risks in Europe will maintain interest in defensive assets. In addition, the strengthening of the US dollar against the euro reduces the chance of the Fed raising interest rates this year. We forecast a drop in gold prices in the near future within the correction, but interest in the precious metal will remain high in the near future. We expect further growth of gold prices in the near future.
The price of Light Sweet crude oil corrected today after a decline yesterday during which the price has updated the local minimum. It should be noted that an excess of oil supply remains despite the decline in US production. In addition, the drop in the number of active rigs in the US has slowed down and the price level of around 50 dollars a barrel is acceptable for some shale oil producers. Investors are waiting for tomorrow's publication of statistics on the US oil inventories, and today we should pay attention to the final report on the growth of US GDP in Q1 (12:30 GMT). Our forecast for oil in the near future remains negative.