13.01.2016 - The demand for defensive assets has decreased
The price of gold shows a decline on the background of improved investor sentiment after the People's Bank of China has taken steps to equalize the exchange rate of yuan in Hong Kong and Shanghai. In addition, today was published positive statistics on China's trade balance, which surplus rose to 60.1 billion dollars in December against 54.1 billion dollars in November. The impact of geopolitical tensions in the Middle East and the Korean Peninsula was short-lived, and now the demand for defensive assets decreases. We expect a continuation of the negative dynamics of prices in the near future and medium term due to the expected tightening of monetary policy in the United States.
The price of Light Sweet crude oil continues to fall against the background of pressure of negative factors including a decrease in demand for oil in China and concerns about the pace of growth in the second largest economy in the world, saving the oversupply, which according to experts predictions will continue in 2016. Increasing the supply of oil from Iran in connection with the lifting of sanctions, has been already priced in, but will continue to put pressure on the oil quotations. Our medium-term outlook remains negative and we expect reaching the level of 30 dollars per barrel in the near future.