Gold & Oil.

Gold & Oil.

Last week, the Foreign Minister of Iran, Mohammed Javad Zarif, had met in Geneva with its counterparts of the United States, China, Russia, Britain, France and Germany to attempt to reach a compromise on the Iranian nuclear issue.

And finally in the night of Saturday 23 to Sunday November 24, an agreement has been reached, marking a historic date in the negotiations with Iran and its return to the international scene.

Impact on oil:

The Geneva agreement has not lifted all sanctions on Iran, particularly on the gross of the Islamic state, nothing will change for oil exports, U.S. and European markets remain closed for Iran’s exportations, decision dated back to January 2012. Iran will continue to export its crude to Asian countries (China, India, Malaysia ...) in small quantities.

Pending future discussions, investors seem to believe in a delay of Iranian oil market, the price of Brent crude is down at the beginning of the week.

The impact on Gold:

Conflict resolution on the Iranian nuclear issue has eased tensions between the world powers and the Islamic State. Most investors find Geneva I very promising for the political and economic future and are taking more risks affecting therefore the gold trade

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