The price of gold showed strong reduction on the background of positive data on the US housing market, which has led to an increase in the price of the US dollar and the rise of the stock indexes. Investment funds cut positions in gold, and the demand from Asian consumers remains low. ECB official Benoit Kere said the flexibility of quantitative easing, which indicates the probability of more actions on the part of the ECB to maintain inflation at a target level. Today is forecasted the rise in volatility after the publication of minutes of the previous meeting of the US Federal Reserve which will be given to the weak growth assessment of US economic indicators at the beginning of the year. Our medium-term outlook for gold remains positive, but we may see a further drop in prices in the near future.
The price of Light Sweet crude oil has continued to fall against the backdrop of a stronger US dollar after the release of strong statistics on the housing market in the country. According to our estimates, a rebound in oil prices in recent weeks was unreasonably strong and oversupply of oil on the market as well as the likelihood of lifting the sanctions against Iran leads us to think about the likely drop in prices of oil in the near future. Today, a strong influence on the course of trading will have news on oil and petroleum products in the US (14:30 GMT). The drop can be accelerated in the event of fixation of long positions. Our medium-term outlook for oil remains negative and we recommend to open short positions on oil.