- Crude OilÂ
WTI crude oil rose by 1.54% to 60.70 in yesterday’s session. In the early Asian session today, WTI is relatively flat around 60.64, holding firm despite the API reporting a 4.4 million-barrel build in U.S. crude inventories.
Geopolitics continue to be a positive catalyst, as U.S. sanctions on Rosneft and Lukoil take effect Friday, which may tighten Russia’s export flows over time. The U.S. Treasury has already indicated there should be early signs of pressure on Russian revenues, indicating possible future supply constraints. Traders are now looking forward to the EIA report, where any build that is smaller than anticipated or drawdowns in product could lead to bullish follow-through.
From a technical standpoint, WTI remains bullish, trading above its 9-day and 20-day SMA levels. Resistance is seen at the 50-day SMA level of 61.20, while support lies at the key level of 60. As for Brent, resistance lies at the 50-day SMA at 64.70, while support is at the 9-day SMA at 63.70.
- Gold & Silver
Gold increased by 0.5% in yesterday’s session following a market-wide selloff in global equities, driven by concerns over high AI-related valuations. Further, data on Tuesday increased hopes of rate cuts, showing that the number of Americans receiving unemployment benefits reached a two-month high in mid-October, with continued claims for jobless benefits rising to 1.9 million in the week ending October 18. In today’s session, the precious metal is up 0.6%, as investors seek refuge in the safe haven amidst risk-off sentiment and await the release of the minutes from the Federal Reserve’s latest policy meeting, scheduled for release today. The markets will also closely watch the delayed September US jobs report, scheduled for release on Thursday. This will further predict the trajectory of interest rates and the movement of bullion. However, the long-term trend remains intact with the metal gaining 50% this year despite the pullback. The bullion’s long-term prospects also received a boost as it emerged as a top pick in 2026. It is expected to post the second-best returns next year, according to the Bank of America. The majority of returns will be driven by the new Fed chair, expected to take a dovish stance, and by central bank buying. Additionally, Goldman Sachs also estimates that average monthly purchases of 80 tons are likely to occur in the fourth quarter of 2026, as central banks diversify their reserves to hedge geopolitical and fiscal risks.
Technically, the commodity is trading at $4,085 and has risen above the 21-day SMA of $4,048. It rebounded from the support level at $4,026, which marks the higher end of the range, from which it broke out earlier this month. A break above $4,100 will signal more bullish momentum for the metal and push it toward $4,150. Conversely, a break below $4,026 will return the metal to the consolidation phase it previously experienced.
Silver is currently trading at $51.37, increasing by 1.3% in today’s session and rebounding from the support at $50.23. It is trading above the 9 and 21-day SMA levels of $50.95 and $49.28, respectively. On the 4-hour charts, it appears to be forming a cup-and-handle pattern, with the neckline at $54.44. A break above this level will propel the metal towards $60. Conversely, a support is observed at $50.23, followed by the 21-day SMA level at $49.28.
