The price of gold resumed its decline after recent gains triggered by the weakening of US dollar. Investors fixed long dollar positions before the end of the year and the Fed meeting, at which according to our forecast will raise interest rates. As a result, monetary tightening and volatility will grow strongly and once the situation stabilizes, gold will likely continue to decline. Support for the metal remains strong demand for physical gold in China due to the holiday season, which will last until February, when the country celebrate the New Year. We expect a high level of volatility in the coming weeks and are waiting for the Fed statement on monetary policy.
The price of Light Sweet crude oil yesterday after a strong growth caused by data on oil reserves in the United States, returned to the lowest in six years. It is worth noting that US crude inventories fell last week by 3.6 million barrels after ten weeks of growth. Analysts had forecasted an increase of 0.7 million barrels per day. At the same time reserves of distillers increased by 5 million barrels. The excess of supply of oil on the market is stable and will increase after the increase in oil supplies from Iran, which is expected in the coming months. We predict falling prices in the medium term, but do not rule out a correction in the near future.