The price of gold continued to fall due to lower demand for defensive assets in connection with the reassessment of risks associated with volatility on financial markets in China. It is worth noting that in times of instability, investors shift their focus to defensive assets. Support for gold were purchases of gold by central banks that continued to grow and increased consumption of jewelry in China before the New Year, which is celebrated in the beginning of February. On the other hand, the tightening of monetary policy the Fed and the expected growth of the dollar will have a negative impact on the dynamics of the gold in the medium term. We expect the price decline in the near future.
The price of Light Sweet crude oil continued to decline and fell below the psychologically important level of $ 30 a barrel on speculation regarding the lifting of sanctions against Iran, and increase oil exports from the country in the near future. Earlier, Iran said that it can increase oil exports by 1 million barrels a day for 3 months after the lifting of sanctions. The decline in demand for oil in China and concerns about slowing growth in the country also have a negative impact on the expectations of experts. We expect a continuation of the negative dynamics of prices in the medium term because of oversupply in the oil market.