The price of gold corrected downward after the recent growth for a few days, which was caused by the expectation of softer Fed rhetoric about further increases in interest rates. As a result, these expectations were met and investors fixed positions. Today, the key event will be the publication of the preliminary report on the growth of US GDP in the 4th quarter. In case of poor results, the demand for defensive assets like gold will grow and upward trend in prices will continue. On the other hand the improvement of sentiment on the stock markets will lead to lower prices for gold. We expect increased volatility today and look forward to continued growth in the near future.
The price of futures on Light Sweet crude oil yesterday showed rapid growth after the Russian energy minister said on a possible agreement with the OPEC countries on the reduction of oil production by 5%, but this was denied by the representatives of OPEC. At the moment, investors are trying to assess the possible time to achieving the balance of supply and demand on the market and the impact of the excess of supply of oil on the market is less important than before. We do not expect reaching the consensus between the countries of OPEC and other major oil producers, but this topic will lead to a lot of speculation that will lead to increase of market volatility. Our medium-term outlook for oil remains negative.