The price of gold continues to consolidate around the level of $ 1,100 an ounce after it rose amid increased demand for defensive assets due to a number of factors including geopolitical tensions in the Middle East due to the breaking of diplomatic relations between Saudi Arabia and Iran, and also on the Korean Peninsula due a hydrogen bomb test in North Korea and the fall in the stock markets in China. The demand is supported by increased consumption of jewelry in China before the celebration of New Year in China, which will take place in early February. We expect the fall in gold prices after the current increase due to the strengthening US dollar.
The price of Light Sweet crude oil after the correction, renewed decline amid saving excess of oil on the market, which is likely to increase after the increase in oil supplies from Iran in connection with the lifting of sanctions against the country. In addition, tensions between Saudi Arabia and Iran will prevent the achievement of a consensus on the reduction of quotas in OPEC. Oil consumption in China, which is the world's second largest oil consumer fell in November compared with the same period of 2014 by 2%. We expect a further decline of quotations to the levels below $ 30 a barrel, and growth is possible only within the correction.