The situation in the oil market is more like a roller-coaster ride. Two days ago, the quotes went down sharply after the statement of St. Louis Fed President James Bullard. Yesterday, they managed to recoup early losses, driven by the news on the epidemiological situation in China.
According to the latest reports, the virus wave appears to have subsided. This heightens investor expectations that Beijing will ease the remaining restrictions at a more rapid pace, which will eventually lead to a gradual recovery in energy consumption in China, the world's largest oil importer. The most important thing is that investors are looking for trading ideas that could contribute to a sustainable movement, up or down. However, the existing factors are mixed. Therefore, the market will most likely continue to seesaw for some time.
According to the trading chart, Brent crude oil futures completed their correction around the level of $84. As a result, the volume of short positions decreased, thus allowing the asset to begin a gradual recovery. To extend gains, the quote needs to consolidate above the 88 mark at least on the four-hour chart. Otherwise, another price rebound may occur.
Likewise, gold won back its early losses. Moreover, it managed to rise above $1,925 per troy ounce, hitting a new local high. If the price stays firm above the 1,930 mark, it will most likely head towards the psychological level of 2,000.
Increased demand for the yellow metal can also be attributed to the news from China. Given that the economy gradually emerges from prolonged isolation under tough restrictions, consumer activity is expected to grow. In order to ensure that supply meets growing demand, China needs both commodity and financial reserves. However, the country has been gradually reducing its dollar assets in recent years, so it needs to increase financial reserves in a form other than the US currency. At the moment, gold is best suited for this role.
India and Russia are actively pursuing this policy along with China. Notably, these countries are not only among the biggest economies in the world but also have the largest reserves. Higher demand from these countries has already led to a noticeable rise in gold prices. Given that they continue to increase their gold reserves, the outlook for the yellow metal looks extremely rosy.
Speaking of the Russian currency, the US dollar’s attempts to rise above 69 rubles failed, and the market returned to the range of 68 to 69 rubles per dollar. In general, the situation remains unchanged. Thus, it can be assumed that the ruble will continue drifting in a relatively tight range. At the same time, one should bear in mind that last year, the Russian currency posted modest gains in similar circumstances. That is, there is a likelihood that the market range may well shift to the marks of 67-68 rubles per dollar next week.

00:00 Introduction
00:24 Oil Market Situation
01:03 Brent
01:30 Gold
01:51 Increased demand for gold
02:31 Club of Three
03:00 USD/RUB
03:38 Conclusion

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