28.07.2016 - Crude oil inventories unexpectedly rose in the US
The price of gold has shown a sharp increase against the background of falling of US dollar and reduction the likelihood of higher interest rates in September, after the Fed gave no guidance on the timing of monetary policy tightening. This fact traditionally has a positive effect on gold. It is worth noting that the quotes of the precious metal have shown significant growth since the beginning of the year due to rising concerns about global economic growth, which has increased the interest in defensive assets. Volatility will be increased due to the expectation of tomorrow's publication of important data on GDP growth in the US and the Eurozone in the second quarter. Our medium-term outlook remains positive.
The price of Light Sweet crude oil continued to fall after yesterday was published statistics on the US oil inventories, which rose unexpectedly by 1.7 million barrels against the forecast of decline by 2.1 million barrels. The excess of oil supply on the market will continue to put pressure on prices and temporary supply disruptions in the early summer were not able to significantly change the situation. It is worth noting that tomorrow will be published statistics on GDP growth in the US and the euro area, which will support the volatility at a high level. After a sharp fall in the previous weeks, we expect to see a correction, but our medium-term outlook remains negative.