Iran Acquires Right To Use Nuclear Power, Pushes Commodities Lower

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 precious metals market. 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 athe past 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.