Business

Tensions, US elections boost oil, gold prices: Report

 
Oil edged higher after a two-day decline, with traders weighing developments in the Middle East and the prospects for more OPEC+ supply. Brent rose toward $72 a barrel after tumbling more than 6% over the previous two sessions, while West Texas Intermediate was near $68.

Oil markets remain under pressure as attention returns to weak fundamentals, such as low demand from China and sufficient supply, as the Middle East conflict risk eases. Traders are also awaiting OPEC+’s production plans for December, as well as potential stimulus measures from China's legislative meeting to support demand. Additionally, U.S. growth and employment data are in focus, offering clues for the Federal Reserve’s upcoming decision and insights ahead of the U.S. election, according to Vijay Valecha, Chief Investment Officer of Century Financial.

Oman Crude oil was traded for December 24 at $71.52 on Wednesday

Bitcoin surged to $73,577 in early Asian trade on Wednesday, just $173 shy of its all-time high of $73,800, as investors closely monitored the upcoming US presidential election. However, the leading cryptocurrency was trading 2.2% higher around $72,533. The surge in the price of bitcoin is seen as a bet on a Republican victory, as Donald Trump has emerged as the pro-crypto candidate.

Trump is currently leading in prediction markets, while polls show a close race with Democratic candidate Vice President Kamala Harris. Volatility is expected to be high around Election Day on November 5.

Traders are also betting that Bitcoin could reach $80,000 by the end of November, regardless of the election outcome. Trump has also suggested enlisting Elon Musk's help to reduce government spending, a plan humorously dubbed the Department of Government Efficiency (DOGE), referencing the Dogecoin token that Musk supports. Bitcoin has surged by 111% over the past year, despite reduced expectations for Federal Reserve interest rate cuts and increased scrutiny of the stablecoin Tether.

Gold

Gold prices in Oman on Wednesday are:

24 Carat – RO35.300

22 Carat – RO33.100

18 Carat – RO26.000


Today, gold is up 0.37% as investors flocked towards the haven metal as the US elections are set to take place in exactly a week.

According to RealClear Polling, Trump is currently leading Harris in the presidential race, with the averages of Trump and Harris at 48.6 and 47.6, respectively.

Looking ahead, gold is expected to widen its gains ahead of the ADP Nonfarm Employment Change.

Analysts are expecting the figure to be at 110K for October, down from 143K in September, while the GDP

Furthermore, this week also beholds the Indian festival – Diwali. The festival is set to be celebrated from October 31 to November 1.

|Historically, in the past 10 years, the metal has generally declined by about 0.94% 2 days before the festival.

From a technical standpoint, gold is showing strong bullish momentum above the pivot at 2778. Additionally, the yellow metal’s recent break from the symmetrical triangle pattern is expected to fuel the momentum further. The metal has immediate resistance at the level of 2791 and support at 2770.