The price of gold is increasing after a strong downward correction in the previous days. It is worth noting that the demand for the defensive assets fell after investors have overestimated the risks associated with the fall of the Chinese stock market. In addition, at the economic symposium in Jackson Hole, most of the Fed officials noted the high probability of the Fed raising interest rates this year, which will be negatively displayed on the value of gold. Strong influence on the course of trading tomorrow will have news on business activity in the manufacturing sector in China. In case of weak data, the gold demand may rise. We expect the price increase in the near future and expect a high level of volatility.
The price of Light Sweet crude oil continues to correct upwards after a strong decline in the previous week. The main reason for the growth was the closure of short positions. In addition, investors fear disruptions in oil supplies due to the Erica storm in the Gulf of Mexico. The main factors that negatively affect the price of oil is still an excess of oil supply in the market and fears of slowing growth in oil demand due to concerns about the prospects for the Chinese economy, which is the world's second largest oil consumer after the United States. The number of active oil rigs in the United States rose for the sixth straight week. We assume continued upward price correction in the near future, but the medium-term outlook remains negative.