FX.co ★ 05.08.2022: Oil prices hit 6-month low on demand worries. Outlook for oil, gold, RUB.

05.08.2022: Oil prices hit 6-month low on demand worries. Outlook for oil, gold, RUB.

Oil dropped to its lowest level in six months amid concerns that a possible global recession could torpedo energy demand. Oil traders continue to mull over the news from the US Energy Information Administration that the country’s demand for gasoline is now far below levels posted at the height of the pandemic, in the summer of 2020. In addition, businesses are reducing their energy consumption in the face of sluggish demand, soaring prices, and high interest rates. US crude oil inventories are rising. Brent crude oil futures have lost about 10% since the beginning of the trading week. As a result, the quote overcame the important area of 96/100 and settled at levels seen in February this year. Moreover, the market signals a shift in investor sentiment. Thus, the medium-term trend may turn bearish if the quote continues to trade firmly below 94.50 on the daily and weekly charts. Following a short-term pullback, gold futures resumed their upward march and reached a one-month high. The quote broke through the resistance level of 1,780 and rose above the 1,790 mark. Again, this is due to fears of a recession. Geopolitical risks caused by escalating tensions between China and the United States are also boosting demand for gold as a safe-haven asset. Thus, the precious metal is set to end the week up 1.5% and is on track for its third straight weekly gain. Judging by strong bullish sentiment, market participants may well ignore the fact that short-term timeframes signal the asset's overbought condition. In this case, the yellow metal will head towards the next level of 1,800. As for the Russian currency, the dollar/ruble pair showed proper trading activity only at the beginning of the week, after which the market began to move sideways around the level of 60. Given the current sluggish activity, it makes no sense to conduct range trading due to uncertainty. Thus, to make further trading decisions, traders can be still guided by the following control values: 61.50 in case the price heads for the 62.65-65 area

58.50 if the price resumes a decline.


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*The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade
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