An attempt to consolidate oil above $78 per barrel proved unsuccessful, and the oil prices quickly returned to the area of $75 per barrel. Given that nothing changed in terms of supply and demand balance, this decline could be attributed to political factors.
Russian Deputy Prime Minister Alexander Novak said on Thursday he expected no new steps from the OPEC+ oil producers group at its upcoming meeting. Earlier it was assumed that the cartel might announce additional output cuts, which kept the market on edge. Against this background, oil dipped. Considering that the situation with oil supply is unlikely to change in the near future, much will depend on demand. This factor in turn mostly depends on China's economy. If its economic recovery speeds up, oil prices will gain value.
From a technical point of view, Brent crude failed to stay firm at new price levels. As a result, the volume of long positions at around $79 decreased, which caused a reversal. Currently, the quote is moving in the previous sideways range, reflecting investor uncertainty. Thus, when making trading decisions, traders are recommended to be guided by the range boundaries of 74/77.50.
The dollar’s overbought status continues to exert pressure on gold. The yellow metal has already fallen below $1,950 per ounce amid growing expectations that US interest rates could move higher and stay there for longer than previously expected. If the price fixes below the 1,950 mark, the asset will most likely extend weakness. At the same time, gold could be ripe for a rebound as it is deep in oversold territory.
Basically, both the currency and gold markets may enter a correction today. As the dollar weakens, the metal is expected to return to the area of $2,000 per ounce. However, this process will take time, perhaps even a week.
Although the ruble remains stable, it is increasingly trying to gain value. Yesterday, the dollar not only dipped below 80 rubles but even reached the level of 79 rubles, thus forming a trading range. Currently, the ruble is trading near its upper boundary. In addition, the quotes are likely to be affected by an inevitable correction in the global foreign exchange market. The imbalance in the form of an extremely overbought dollar should be eliminated. In this case, the greenback may fall even below 79 rubles. However, its drop is expected to be short-lived as the Russian currency will have to return to the range of 79 to 80 rubles per dollar.
That's all for now. We continue to follow developments in the financial markets. Subscribe to our channel and follow the news with us. See you soon!

00:00 Introduction
00:25 Oil Market Situation
01:12 Brent
01:43 Gold
02:39 USD/RUB
03:28 Conclusion

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