The situation in the oil market remains unchanged. Oil prices seem to have stabilized just below $115 per barrel. Notably, the quotes have not been able to overcome this level for more than two months. Nevertheless, the fact that oil is still holding near this mark, clearly indicates an uptrend.However, oil needs some strong factor that could drive it up. The market cannot stand still for a long time. Thus, if there is no significant reason for its further growth, oil prices will first slide to $110 per barrel and then head for the level of $100 per barrel. Yesterday, gold tried to break through the mark of $1,860 per ounce, but its attempt failed. As a result, the price returned to the area of $1,850. However, after Atlanta Fed President Raphael Bostic said that policy makers could potentially pause interest-rate increases in September, the yellow metal resumed its bullish run. Its growth is so far sluggish, but the prevailing sentiment in the market is still bullish. Thus, if the price consolidates above 1,870, gold will most likely extend gains, hitting the area of 1,890/1,900.Investors were apparently spooked by the statements by ECB President Christine Lagarde that the European regulator might abandon negative interest rates in September. The point is that it is not clear whether she meant the refinancing rate, which is 0.0%, or the deposit rate, which stands at -0.5%. This uncertainty is holding back the metal’s growth as its further dynamic depends on the answer to this question. If it is about the refinancing rate, gold will suffer losses again. If Christine Lagarde meant the deposit rate, the asset will keep gaining value. Thus, the market is expected to remain jostled by uncertainty until investors get an answer to this question. In the meantime, the Russian currency continues to strengthen. The dollar has almost approached the mark of 55 rubles. The reason for the ruble’s extended rally remains the ever-growing demand for Russian energy, for which some counties have to pay in rubles. However, a growing number of experts predict that such a strong ruble could have a negative impact on the national economy. The Bank of Russia once again eased the restrictive measures urgently introduced in response to EU and US sanctions. In particular, yesterday, the rate of mandatory sale of foreign exchange earnings was reduced to 50% from 80%. However, this step has not yet borne fruit. Nevertheless, this decision will clearly limit the ruble’s growth potential and create preconditions for its subsequent correction, which is sorely needed.
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