The price of gold continues to fall against the dollar strengthening in connection with the soon completion of the program of quantitative easing, and the expectation of further monetary tightening by the Fed. Investment funds continue to reduce gold reserves in their portfolios, and a slight increase in demand for gold in Asia cannot neutralize these negative factors. Geopolitical tensions decreased slightly, but the deterioration of the situation in Iraq and Ukraine can lead to another increase in the demand for gold. Besides the growth of quotations may be due to correction on the stock markets.
Strengthening of the dollar was negatively displayed on the dynamics of oil prices. Negative for oil was the news on the trade balance of China, where despite the increase in the trade surplus, occurred the 2.4% decrease in import. We recall that China is the second largest oil consumer in the world after the United States. Today, dynamics of trading may be affected by the data on small business optimism in the United States (11:30 GMT). Low demand in Europe amid rising oil production in Libya leads to a further decrease of the price of oil. Our outlook remains negative.