- Crude Oil
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. While one Israeli minister suggested that the war with Hezbollah could be over by year-end, the country’s military chief vowed to strike Iran “very hard” should the OPEC producer launch another attack.
API data revealed that U.S. crude inventories dropped by 0.6 million barrels last week, going against forecasts of a 2.3 million barrel increase. Still, 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.
As per John Helms report, Crude WTI Dec, Resistance levels are at $68.17 and $69.00, while Support levels are at $65.99 and $64.16. Brent Jan, Resistance levels are at $72.92 and $73.87 while Support at $69.68.
CryptocurrencyBitcoin 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 5th.
Bitcoin’s surge is driven by robust institutional demand, with U.S. Bitcoin ETF holdings hitting a record $66 billion and open interest increasing by $2 billion in just 48 hours. Avinash Shekhar, Co-Founder & CEO of Pi42, remarked that Bitcoin’s rally showcases growing momentum and confidence in digital assets, with substantial trading volume and heightened investor interest as the U.S. presidential elections approach.
Meanwhile, options traders are 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.
With the technical charts looking strong, BTC is all set to create a new ATH in the next few days. Bitcoin’s resistance stands at $74,000 and strong support lies at $70,000. If Bitcoin can secure a breakout above $74,000, it could potentially advance to $77,000.GoldToday, gold is up 0.37% as investors flocked towards the safe 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 31st October to 1st November. 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.
Outlook: Bullish
Gold prices in the UAE today are as follows:
24 Carat – AED 336.50
22 Carat – AED 311.75
21 Carat – AED 301.75
18 Carat – AED 258.50
