The price of gold continued to consolidate, despite the publication of a number of important statistics. Thus the US GDP growth was 1.4% in the second quarter compared with the same period last year. It should be noted that the statements of representatives of the Federal Reserve failed to clarify the situation regarding the intention of raising interest rates this year. The growth of oil prices has led to a decline in demand for defensive assets like gold, but the situation remains unstable. In case of decrease on the stock markets, we expect a shift of interest of investors to defensive assets. Today, it is worth paying attention to statistics on personal income and consumer spending in the US (12:30 GMT) and the index of consumer confidence in the US (14:00 GMT). Our medium-term outlook remains positive, but growth probability of the Fed’s monetary tightening will restrain bulls.
The price of Light Sweet crude oil is corrected after a strong growth in the previous days, which was caused by previous agreement of OPEC countries to cut oil production from current levels of about 33.24 million barrels per day up to 32,5-33,0 million barrels per day. It is worth noting that we doubt the applying of these agreements the details of which are planning to adopt at a formal meeting of OPEC in November. US crude stocks continue to decline, but drilling activity continues to grow, which will put pressure on share prices in the coming months. The growth potential in the near future is limited and we expect the resumption of the negative dynamics with a potential of reduction to 40 dollars a barrel or below.