Amid Tensions in the Middle East, Focus on Crude Oil and Gold Prices

Against the backdrop of heightened tensions in the Middle East, the current trends in crude oil and gold prices are drawing significant attention. It is essential to monitor the performance of the domestic futures market and the impact of escalating Middle East tensions on crude oil futures trading prices.

This week (October 23 to October 27), crude oil and gold prices continued to rise, with gold futures posting gains for the third consecutive week. Black commodities halted their decline and rebounded, while live hog prices remained weak.
Details of the domestic futures market are as follows:

• Energy and Chemical Sector: Crude oil rose 1.54% weekly, while fuel oil fell 0.57%;

• Black Commodities Sector: Iron ore gained 1.94% weekly, and coking coal increased 0.78%;

• Nonferrous Metals Sector: Shanghai nickel rose 0.16% weekly, Shanghai tin increased 1.05%, Shanghai copper advanced 0.89%, and Shanghai zinc climbed 1.43%;

• Precious Metals Sector: Shanghai gold increased 1.25%, and Shanghai silver rose 0.94%;

• Agricultural Products Sector: Palm oil gained 0.72% weekly, eggs increased 0.28%, and live hogs advanced 0.56%.

This week, U.S. fighter jets struck Iran-linked targets in eastern Syria, exacerbating the already tense situation in the Middle East. Crude oil futures closed at a one-week high.
December West Texas Intermediate (WTI) crude futures on the New York Mercantile Exchange rose by $2.33 to settle at $85.54 per barrel, a 2.8% gain. The front-month contract posted a weekly decline of 2.9%. December Brent crude futures on ICE Futures Europe increased by $2.55 to close at $90.48 per barrel, a 2.9% rise, with a weekly drop of 1.8%. Both Brent and WTI crude settled at their highest levels since October 20 on Friday, after hitting their lowest since October 12 in the previous session (Thursday).

Close attention should be paid to the impact of the Middle East situation on crude oil futures prices and the continuous rise in gold futures prices. The current volatility in crude oil is driving significant changes in both the crude oil and gold markets.