CCTV Script 23/02/16

– This is the script of CNBC's news report for China's CCTV on February 23, Tuesday.

Welcome to CNBC Business Daily, I'm Qian Chen.

Oil and gold prices are still in the spotlight...

The plunge in crude-oil prices that has shaken financial markets around the world seems also to have loosened the link between oil and gold.

Historically, crude oil and gold have marched together. Rising oil prices increase fears of inflation, raising demand for gold because of its appeal as a store of value.

Falling oil prices and lower inflation usually mean better profit margins for manufacturers, increasing demand for stocks at the expense of gold.

So far, talk of the production freeze deal has driven up prices, but some analysts are skeptical that without an actual cut, just leveling off production will not turn the tide of oversupply.

Neil Atikinson, head of the International Energy Agency's oil market division, said the four producers who proposed the freeze were not anticipated to increase production anyway, and lacking a cut the outlook does not change.

"It makes no difference to current market fundamentals," Atkinson said. He was also attending the IHS CERAWeek conference.

GOLD PRICES sank 2% on Monday from last week's close, as stocks bounced back and the USD got stronger.

Hefty stock market plunges this year have not been justified, according to commodity analysts at Goldman Sachs, who are urging clients to short gold which has found favor during this period of fear and volatility.

"Systemic risks from oil, China and negative rates are very unlikely," a team at the bank, led by Jeffrey Currie and Max Layton, said late Monday.

"Banks have ample liquidity to maintain funding against higher capitalization, the negative macro impacts from low oil prices have likely already played out and are not systemic while the spillovers from China are limited and the U.S. is far from recession."

CNBC's Qian Chen, reporting from Singapore.

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