The price of gold has shown strong growth on the background of increased demand for defensive assets, due to the failure of the negotiations in Greece and creditors on the reforms that are needed to get the next tranche from the IMF. Tomorrow, the country could default if the country would not pay nearly 1.6 billion euros IMF. Prime Minister of Greece, Alexis Tsipras appointed referendum on austerity measures that are required by creditors. The vote will take place on July 5. Rising gold restrained the strengthening of the US dollar. Investment funds increased their gold reserves, but demand from Asian consumers is still weak. Our medium-term outlook for gold remains negative.
The price of Light Sweet crude oil declines amid fears of investors about a Greek default, which will have a negative effect on the economy of the European Union. In addition, the strengthening of the dollar puts pressure on oil quotations. The main event of this week will be the negotiations on Iran's nuclear program. At the moment, there is a risk the lack of agreement on the nuclear program of the Islamic Republic on June 30. On the other hand in case of the lifting of sanctions against Iran, the excess of supply of oil will increase by 1 million barrels, which will continue to put pressure on the oil quotations. We maintain a medium-term negative outlook and expect strong growth of volatility this week.