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  • Market News
  • 25 November 2013 :: Iran Acquired The Right To Use Nuclear Power Which Pushed Commodities Down
25 November 2013

Iran Acquired The Right To Use Nuclear Power Which Pushed Commodities Down

By Kristina Leonova: Chief Analyst in the Investment Research Department

Iran Acquired The Right To Use Nuclear Power Which Pushed Commodities Down
Long-awaited safe permission of the situation with Iran became one of the main events of last weekend. After almost 10 years, on November 24th, on the last round of negotiations the compromise was found in Geneva. Six international intermediaries (the Russian Federation, the USA, the People's Republic of China, Great Britain, France and Germany) recognized the right of Iran to use nuclear power in peace purposes on the condition of it being controlled from IAEA. Within the signed arrangement, there is the right of Iran to peace atom, including the right to enrichment, at the understanding that this program will be put under the strictest control of the IAEA. The U.S. President, Barack Obama, urged the congress of the USA to refrain from introduction of new sanctions against Iran due to the achievement of arrangements in Geneva. According to Mr.Obama, the agreement represents the first step in a solution which will create space and time for achievement of further arrangements according to the nuclear program of Iran.

It isn't clear yet how all stock markets will react to this news, but the Oil market precisely after such statements, will certainly have a correction. This morning, Brent is losing 2.63% traded on a level of 108.13$ and Light is down by 1.39% at a price of 93.52$ per barrel.

No less, an interesting situation continues to develop in the market of precious metals. On the basis of the development of the deflationary process in Japan, Europe and the USA, Gold and Silver, for already more than a year, continue to decrease and its over soft monetary policy of the central banks and artificially increased liquidity. Fears about fast reduction of the program of monetary easing by FED only strengthen a negative view of precious metals.

From a technical point of view, Gold, for already more than a year, is in a descending trend, and we cannot see even one sign which will show the turn of the trend. Recently, Gold has been going through the important technical level on 1250.00$ and now the most expected outcome is the level of 1200.00$ per troy ounce. These levels could be taken into consideration for the opening of long positions. It is worth noting that the cost of Gold mining now on average makes 1100.00-1200.00$, therefore we will hardly see a collapse of quotations lower than 1100.00$.

This morning, Gold is down by 0.97% at a price of 1232.10$ per troy ounce. Silver is also under strong pressure, decreasing by 1.13% and bargaining next to the level of 19.64$ per troy ounce.
About the author
Kristina Leonova
Kristina Leonova
Chief Analyst in the Investment Research Department

Kristina Leonova is an up and coming market specialist - currently in the process of obtaining The Chartered Financial Analyst Degree in CFA Institute.

She began her career at Liteforex (ex. Mayzus) at only 20 years old, holding the position of the Assistant of the Chief Financial Officer.

She has since become invaluable to the Company, holding the position of Chief Analyst in the Investment Research Department, and now is also responsible for our world renowned market reviews.

She has a keen eye and a good gut instinct when it comes to analyzing the markets, always staying at the top of her game, with her work often being published on other websites and news vendors.

Mayzus is excited to welcome her as our new, top financial analyst.

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