The price of gold continued to strengthen against the background of falling stock markets in the United States. It is worth noting the growth in demand for defensive assets after the publication of data on non-productive PMI in the United States, which in December fell to 56.2 against 59.3 in November. Macroeconomic data from the US, Europe and Asia continue to point to a slowdown in the global economy. Demand for gold remains high in Asia due to the traditional shopping for jewelry before the Chinese New Year. The political crisis in Greece, which could destabilize the financial system of the European Union contributes to rise in the price of gold. We maintain our medium-term positive outlook for gold and recommend holding long positions.
The price of Light Sweet crude oil continues to fall rapidly amid expectations the publication of data on oil inventories and petroleum products in the US (14:30 GMT). Stopping the reduction of prices in the near future is unlikely due to the excess of oil on the market. OPEC countries refuse to reduce the volume of production and give part of the market to other countries. For example, the US increased its oil production to the highest level in the last 30 years, while in Russia the volume of production rose to a record level in the post-Soviet period. Supply disruptions from Libya cannot stop the price from falling, and we recommend holding short positions on oil in the medium term.