Gold and oil declined and an upcoming meeting today on the US-Iranian talks

Gold and oil declined and an upcoming meeting today on the US-Iranian talks

Gold and oil declined and an upcoming meeting today on the US-Iranian talks: Oil resumed its decline today, having managed to rise to a 7-year high, while traders still concerned about the Ukrainian situation and Russian threats. 

Evest follows market developments in the following report.


Oil declined in anticipation of US Iran talks

Traders focus on talks in Ukraine

Russia and France negotiations

The Dow Jones index rose alone by one point in a volatile session

Mixed dynamics in Asia

The gold declined again and the dollar surged

Oil declined in anticipation of US Iran talks

The oil price fell slightly on Tuesday after hitting a seven-year high following the results of the previous session.

Market attention turned to talks between Washington and Tehran on Iran’s nuclear program, which will resume on February 8.

Investors’ optimism that the parties will reach an agreement allowing Iran to formally resume oil exports is increasing, Bloomberg reported.

Earlier, the Wall Street Journal reported that President Joe Biden’s administration had lifted a number of sanctions against civilian nuclear projects in Iran,
in an effort to bring Tehran back into compliance with the terms of the Joint Comprehensive Plan of Action on Iran, a program approved in 2015.

The April futures price for Brent oil on London Futures Exchange reached $92.53 per barrel,
$0.16 (0.17%) lower than the closing price of the previous session.

As a result of Monday’s trading, these futures fell by $0.58 (0.6%) to $92.69 per barrel.

The price of oil futures for March in electronic trading on the New York Mercantile Exchange (NYMEX) at this time was $91.24 per barrel,
$0.08 (0.09%) lower than the final value of Monday’s session.

The day before, these futures fell by $0.99 (1.1%) – to $91.32 per barrel.

Traders’ concerns about market supply shortages have declined due to some progress in negotiations between the United States and Iran.

In the meantime, demand expectations remain mixed.

For its part, the state-owned Saudi Aramco said that Saudi Arabia planned to raise the price of all grades of oil to buyers from all regions in March.

Traders focus on talks in Ukraine

The situation throughout Ukraine remains a major concern for traders.

The day before, Biden said after talks with German Chancellor Olaf Schultz that the Nord Stream 2 gas pipeline would not work if Russia invaded Ukraine.

At a press conference in Washington following talks with the United States,
European diplomatic chief Josep Burrell said that the European Union was proceeding from the fact that it was possible,
to find a diplomatic solution to the situation that had developed in the Russian border area with Ukraine. 

“If Russia continues the course of aggression, the actions of the European Union and the United States will be significant,
and this is particularly true of sanctions,” he said.


Russia and France negotiations

Russian President Vladimir Putin said at a press conference following negotiations with the French President ,
that the assertion that Russia was acting aggressively ran counter to common sense,
that it was the NATO infrastructure that came close to the borders of the Russian Federation, not the other way around.

Vladimir Putin also said that France and Russia were in solidarity on the need to maintain and fully restore the Joint Comprehensive Plan of Action on Iran’s nuclear program.

Putin drew the attention of French Emmanuel Macron to Kyiv‘s unwillingness to implement the “Minsk agreements”,
the only solution to the situation in south-eastern Ukraine.

He  believes that some of Macron’s ideas could form the basis for joint steps to calm the situation on Ukraine.

Macron promised on Tuesday to discuss Russian proposals on security assurances with Kyiv.

According to Macron, the coming days will be decisive in terms of de-escalation of the situation in Ukraine,
which will depend on negotiations and consultations with the United States, NATO and Europeans,
as well as his meeting with Ukrainian President Volodymyr Zelensky.

According to media agencies, British Prime Minister Johnson is considering deploying British Royal Air Force fighters and RN warships to bring back Ukraine.

For his part, Russian President Putin warned against drawing the European States into military conflict if Ukraine joined NATO.

The Dow Jones index rose alone by one point in a volatile session

US stock indices, the Standard and Poor’s and the Nasdaq, fell by 0.4-0.6%, respectively, and the Dow Jones index rose by only one point after the volatile session on Monday.

This week, markets will focus on US consumer price dynamics data for January, which will be published on Thursday.

Analysts surveyed by Trading Economics predicted that US consumer prices rose by 7.3% on an annual basis last month and 0.5% versus December.

Accelerating inflation and a vibrant labor market recovery can become strong arguments for the Fed in favor of tightening monetary policy.

The corporate reporting season, which is well under way, turned out to be a success overall.

About 75% of companies have reported the S&P index already over the past quarter, and their earnings exceeded market expectations by an average of 8%, according to Credit Suisse.


Mixed dynamics in Asia

In Asia, index dynamics were mixed on Tuesday.

Australia’s ASX index rose by 1.1%, Japan’s Nikkei index – by 0.3%,
China’s Shanghai Composite Index fell by 0.9%, South Korea’s KOSPI rose by 0.8%, and Hong Kong’s Hang Seng Index rose. 

The gold declined again and the dollar surged

Both gold and silver moved lower at the beginning of the European session.

In the rest of the commodity complex, copper fell by about 1%.

In foreign exchange markets, the dollar index rose by 0.35% overnight.

The dollar pair against the Japanese yen was the largest driver, jumping by 0.38%.

In cryptocurrency, bitcoin started to recover, also rising by 2.25%.