The price of gold shows the growth amid today's growing demand for defensive assets in connection with breaking of diplomatic relations between Saudi Arabia and Iran after the attack on the Saudi embassy in the Iranian capital. Geopolitical tensions traditionally boost the demand for defensive assets, but this growth is often short-lived. Also today, was recorded a sharp drop on China's stock market, which resulted in the automatic stop of trading on the Shanghai Stock Exchange. It is worth noting that gold was also supported the correction of the US dollar. This week, a strong influence on the course of trading will have the Fed's minutes of the previous meeting, that will be published on Wednesday and a report on the US labor market, which will be released on Friday. Our medium-term outlook remains negative with a potential drop to $ 1,000 per troy ounce.
The price of Light Sweet crude oil showed an increase due to rising geopolitical tensions in the Middle East, where Saudi Arabia has decided to break diplomatic relations with Iran after the attack on the embassy in Tehran. At the same time, weak data on China's manufacturing PMI, which fell to 48.2 in December against 48.6 in November put pressure on prices of oil. Our medium-term outlook for oil remains negative due to the persistence of excess of supply of oil, which will increase after the lifting of sanctions against Iran.