The price of gold continued to rise and reached the next target level at 1244 dollars per troy ounce. The reason for the increased demand for the yellow metal has become an increased demand for defensive assets due to a sharp drop in oil prices. In addition, investors' concerns about future growth on world stock markets supports the demand for protective assets. Jewelry consumption grows in China before the Chinese New Year. The political crisis in Greece associated with the parliamentary elections in the country on January 25, also contributes to the increase in the price of gold. We maintain our positive outlook for the medium-term and recommend holding long positions in gold.
The price of Light Sweet crude oil decline accelerated after the publication of Goldman Sachs forecasts on the price of oil in the next three months. Thus the target price for WTI crude oil was lowered from 70 to 41 dollars per barrel and for Brent North Sea oil from 80 to 42 dollars per barrel. The excess of oil on the market caused by weak demand in Europe and Asia, and the growth of oil production in the United States and Russia, as well as the refusal of OPEC to reduce oil production quotas lead to a further decline in prices. We see no reason to change the downward price movement in the near future and recommend holding short positions with the target level of 40 dollars per barrel. Our medium-term view on oil also remains negative.