31.07.2015 - Falling of oil has slowed
The price of gold continued to decline after yesterday's publication of statistics on US GDP growth by 2.3% in the second quarter against the forecast of analysts of about 2.6%. The high volatility of the indexes in China has not led to increased demand for safety assets like gold. It is worth noting that the rise in prices of consumer goods stimulates the Fed to raise interest rates and the first increase can take place in September of this year, which is negatively displayed on the gold price. Jewelry demand remains weak and investment funds are selling gold reserves. We expect a further fall in gold on the background of the expected strengthening of the dollar.
The price of Light Sweet crude oil after the correction caused by the decline in US oil inventories, resumed its decline against the backdrop of the strong negative impact of excess of supply of oil on the market. In addition, the strengthening of the US dollar against the backdrop of statistics on US GDP growth, which rose by 2.3% in the second half of the year, which is 0.3% worse than analysts' expectations. We see no reason to change the current negative trend in oil prices, but the downside was also down. Our medium-term outlook is negative and the price is likely to continue to decline today.