29.07.2015 - Traders are waiting for data on oil reserves
The price of gold continues to consolidate near the important level of $ 1,100 per troy ounce due to the expectation of today's Fed statement on monetary policy (18:00 GMT), which will increase volatility. In case of growth of investor confidence of the Federal Reserve raising interest rates, a drop of gold will continue. Demand for the metal in Asia is low due to the reduced consumption of jewelry. It is worth noting that the decline in the Chinese stock market has not led to increased interest in gold as a safe asset. We expect a decrease in prices in the near future and look forward to a strong increase in volatility.
The price of Light Sweet crude oil has corrected upwards but is still near four-month lows. It is worth noting that the increase in oil supply amid fears of investors about the fall in demand for oil in China will continue to put pressure on quotes. Today in the US will be published statistics on oil inventories (14:30 GMT). Tomorrow is expected the increase in volatility after the release of statistics on the growth of US GDP in the second quarter. Our medium-term outlook remains negative and we recommend holding short positions, but do not exclude the correction in the near future.