2023-10-27 12:54:37
Oil prices rose by regarding two dollars today, Friday, in global markets, and gold prices are heading for gains for the third week in a row, as the conflict in the Middle East and the continued Israeli aggression on the Gaza Strip lead to increasing fears regarding oil supplies and investors seeking safe havens.
In early trading on Friday, Brent crude futures rose above $90 a barrel, reversing a weekly loss. US West Texas Intermediate crude futures for delivery next December also increased, exceeding $84.50 per barrel.
The rise in oil prices came following the United States launched strikes on two facilities linked to Iran in Syria, which revived investors’ fears that the war that Israel is currently waging in Gaza may expand to include other parties in the region, which supplies the world with regarding a third of its crude oil needs.
Commerzbank analysts, including Thu Lan Nguyen, said that the tense situation in the Middle East is likely to contribute to raising oil prices next week.
Analysts from Goldman Sachs kept their expectations for the price of Brent in the first quarter of 2024 at $95 per barrel, but they added that the decline in Iranian exports (if it occurs) may push basic prices to rise by regarding 5%.
They indicated – in a memorandum – that prices may jump by up to 20% if the least likely possibility occurs, which is the disruption of trade through the Strait of Hormuz (overlooked by Iran), through which 17% of global oil production passes.
Global stock markets also fell this week, while the dollar gauge is approaching its highest levels since last November, raising commodity prices for most buyers.
Oil, gold, and the dollar are affected by market fluctuations and risks that the world is experiencing (Shutterstock)
Gold rise
In the precious metals markets, gold prices are heading to achieve gains for the third week in a row, as the conflict in the Middle East leads to an increased desire among investors for safe havens, despite US interest rates remaining high for a longer period.
At the beginning of trading today, Friday, gold rose in spot transactions by 0.1% to $1,986.76 per ounce, while US gold futures contracts saw no significant change, settling at $1,996.80.
“Gold prices will be one of the factors affected by the conflict between Israel and Hamas as long as things are at risk of escalation,” said Kyle Rodda, financial markets analyst at Capital-Com.
Gold rose regarding 9% as investors resorted to it as a safe haven from the potential repercussions of the war between Israel and the Palestinians, which escalated earlier this month.
However, existing expectations of a rise in US interest rates kept gold prices below the $2,000 ceiling, which was last exceeded last May.
As for other precious metals, silver settled in spot transactions at $22.84 per ounce. Platinum rose 0.5% to $904.71, and palladium increased 0.2% to $1,135.65.
For the 21st day, Israel continues its aggression once morest Gaza strip Targeting civilians on a large scale, bringing the number of Palestinian martyrs to regarding 7,500 and the wounded to more than 19,000, while the resistance responded by bombing the Israeli depth, confirming its readiness to confront any ground invasion.
The Palestinian resistance, led by the Al-Qassam Brigades (the military wing of Hamas), launched an operation “Al-Aqsa Flood” On October 7th, in response to the aggression once morest the Palestinians, the continued occupation, and the raids on the blessed Al-Aqsa Mosque.
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