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11.11.2021: Surging US inflation affects commodity market - Outlook for Brent, USD/RUB, GOLD.

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The news on a spike in US inflation to a 31-year high led to an explosion in market volatility. The US dollar’s steep rally forced oil to once again show an inverse correlation with the currency. Oil prices collapsed, but they will hardly stay under pressure for long. The quotes are expected to rebound and recover. Moreover, a decrease in US crude stocks will most likely contribute to this. After all, the weekly inventory report showed that an increase in US crude oil stocks turned out to be much lower than expected, specifically, by more than 1 million barrels. This, in turn, may provoke a sizable supply deficit in crude markets and higher oil prices. On Wednesday, Brent crude oil futures lost almost 4% in value, slipping to $82 per barrel. However, under the current conditions and given the fact that the quote is heavily oversold, the benchmark is likely to resume its bullish run. Moreover, this is already happening. Currently, Brent crude is trading at the level of $83 per barrel. Further, it is expected to rebound to $84-85. As for the foreign exchange market, the ruble has joined the general trend. Oil prices are rising again and the Russian currency has begun to recover. Thus, the dollar/ruble pair is currently trading in a downtrend. The ruble gained about 1% per day and headed towards the level of 70 rubles per dollar again. Against this background, the precious metal has advanced significantly, reaching $1,820 per troy ounce for the first time since early summer. Market sentiment on gold is bullish. The trading instrument is on the rise. The thing is that the inflation rate in the United States may force the Federal Reserve to take emergency measures to curb rising consumer prices. In this case, even more traders will shift their focus to gold. Now the asset is likely to pull back slightly, but then it will definitely move towards new highs. Thus, gold may hit a new high, rising above $1,900 per troy ounce from the current level of $1,865. Well, the long-awaited data on US inflation did not leave the markets indifferent. It affected all trading instruments. So, let’s see how long this news-driven momentum will last.

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#commodity_market #oil #instaforex_tv

00:00 Intro
00:26 US CRUDE OIL INVENTORIES
00:42 BRENT
01:06 USD | RUB
01:27 GOLD
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