The European Central Bank has enough tools and resources to prevent a banking crisis, ECB Board Member Isabel Schnabel said yesterday. The comments of one of the most influential and prescient voices of the European regulator reassured investors. As a result, fears of a global recession slightly eased, which allowed oil prices to post modest gains.
If the situation does not change dramatically, oil prices will gradually rise to $80 per barrel. Although the asset is currently pulling back from yesterday's advance, this process is most likely of a local nature. Thus, crude may well resume its bullish run today.
Meanwhile, Isabel Schnabel's statement had a negative impact on the yellow metal. Even a slight reduction in global risks leads to an outflow of capital from safe-haven assets, including gold. However, it is too early to say that there are no risks at all. In fact, this is about the so-called verbal intervention, which is intended to reassure market participants. In other words, such comments are aimed at changing the emotional perception of what is happening. This means their effect is temporary. Market sentiment may change fundamentally under pressure from statistics. However, today’s macroeconomic calendar is bereft of such news releases.
So the market is expected to consolidate around current levels.
From a technical point of view, gold prices are likely to move in the range of 1,935 to 1,950. The volume of short positions will probably decrease, thus allowing the yellow metal to resume gains. However, if the price fixes below the 1,930 mark, short interest will increase. This in turn will lead to stronger downside momentum.
The ruble has been trading sideways in the range of 76 to 77 rubles per dollar for several days in a row. Yesterday, the price made an attempt to rise above the upper boundary of the range but failed. Notably, a gradual recovery in oil prices is becoming an additional factor contributing to the ruble’s gains. Thus, the Russian currency has every chance to move into the range of 75 to 76 rubles.

00:00 Introduction
00:29 Brent
00:48 The oil market situation
01:35 Gold
02:05 USD/RUB
02:34 Conclusion

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