Crude Oil and Bitcoin Surge Amid Geopolitical Tensions and Crypto Optimism – Century Financial

• Crude Oil

Crude oil futures in European morning hours Wednesday were climbing higher as the escalating geopolitical situation around Russia continued to dominate. Moscow has threatened to respond after Ukraine fired a US long-range missile into Russian territory, coming after the Biden administration lifted restrictions on their use. The Kremlin also announced a change in its nuclear doctrine, which allows for the use of nuclear weapons against a conventionally armed adversary: “Any aggression against Russia by a non-nuclear state with the participation of a nuclear state will be considered a joint attack. Elsewhere on the geopolitical front, the latest UN report showed that Iran continues to build stockpiles of enriched uranium, although it is looking for a deal that will limit further expansion in return for relaxing sanctions. However, a Trump administration is expected to immediately push for tighter sanctions enforcement, which will likely restrict oil and condensate flows.
As per John Helms report, Crude WTI Dec, Resistance levels are at $69.97 and $70.16, while Support levels are at $66.80 and $66.32. Brent Jan, Resistance levels are at $73.75 and $74.14 while Support at $71.08 and $69.68.
Gulf MarketsThe ADX General is declining slightly to 9,420.28 in Abu Dhabi in early trading. International Holding Co. PJSC contributed the most to the index decline, decreasing 0.4%. Abu Dhabi National Co. for Building Materials had the largest drop, falling 1.3%.
The DFM General Index opened 0.4% higher, climbing 18.43 to 4,750.15, as stocks gain for the second straight day in Dubai. Emaar Properties PJSC contributed the most to the index gain, increasing 1.3%. Dubai Financial Market PJSC had the largest increase, rising 3.8%.
The Tadawul All Share Index opened 0.2% higher, climbing 17.88 to 11,893.79, as stocks gain for the fourth straight day in Riyadh. Saudi Telecom Co. contributed the most to the index gain, increasing 1.1%. Raydan Food Co. had the largest increase, rising 3.1%.
Oil was steady as an industry report signaled a build in US crude inventories ahead of government figures.
Brent traded near $73 a barrel after closing slightly higher on Tuesday, and West Texas Intermediate was above $69. The American Petroleum Institute reported crude stockpiles expanded by 4.8 million barrels last week while fuel supplies fell, according to a document seen by Bloomberg.CryptocurrencyBitcoin rose to a record high above $94,000 as a report that Donald Trump’s social media company was in talks to buy crypto trading firm Bakkt added to hopes of a cryptocurrency-friendly regime under the incoming Trump administration. Bitcoin, the world’s biggest and best-known cryptocurrency, has more than doubled this year. It was last at $92,104 in Asian hours on Wednesday, having touched a record high $94,078 just toward the end of the previous session.The Financial Times, citing two people with knowledge, said Trump Media and Technology Group, which operates Truth Social, is close to an all-stock acquisition of Bakkt, which is backed by NYSE-owner Intercontinental Exchange. Bitcoin’s rise to a record high was supported by the Trump deal talk report as well as traders taking advantage of the first day of options trading on the Nasdaq over BlackRock’s Bitcoin ETF.Cryptocurrencies have soared since the Nov. 5 U.S. election as traders bet President-elect Trump’s promised support for digital assets would lead to a less restrictive regulatory regime and inject some life back into bitcoin after a listless few months. The growing excitement has taken the global cryptocurrency market’s value above $3 trillion to a record high, based on analytics and data aggregator CoinGecko.GoldGold prices rose to a one-week high of $2441 on Wednesday, before giving up its gains to trade 0.3% lower at $2625. The surge was initially driven by a softer dollar and escalating Russia-Ukraine tensions, which raised the demand for safe-haven assets. However, expectations that China will roll out more stimulus to prop up the economy, coupled with fading worries over a further geopolitical escalation, seem to be lifting the risk appetite and limiting the metal’s upside.
Besides, the market is adjusting its expectations for the Fed’s cuts next year as inflation is becoming a bigger concern. Currently, traders see a 58.9% chance of a 25-basis-point cut in December. Recent strong data and U.S. President-elect Donald Trump’s proposed tariffs have pointed to rates remaining higher for longer. Markets now await the speech from several Federal Reserve officials this week as they are expected to potentially shed light on the U.S. rate cut trajectory. Besides, markets are also awaiting the Nvidia earnings as poor results could weigh on risk sentiments and benefit gold.
The metal is trading above the 9-day SMA at $2608 with immediate resistance seen near $$2630-2641 with next strong resistance seen near 50-day SMA at 2658. Break below $2610 level can result in further losses to $2585-2595 zone.

Gold prices in the UAE today are as follows:
24 Carat – AED 319.25
22 Carat – AED 295.50
21 Carat – AED 286.25
18 Carat – AED 245.25

Last Updated on 3 weeks by News Desk 1