Overview:
Oil prices entered a fourth consecutive session of decline, with Brent crude futures settling at USD 93.65 per barrel and West Texas Intermediate at USD 86.98 per barrel. The selloff reflects the removal of geopolitical risk premium tied to U.S.–Iran tensions following the Democratic Party's performance in congressional elections. Gold prices meanwhile rallied 3.4 percent, supported by a weaker U.S. dollar.
Details:
Crude benchmarks retreated sharply on Wednesday, with Brent falling USD 8.98 or 8.67 percent to USD 94.62 per barrel in a single session. West Texas Intermediate declined USD 8.39 or 8.73 percent to USD 87.70 per barrel. Analysts attributed the decline to reduced expectations of escalation in U.S.–Iran conflict following electoral outcomes that calmed investor concerns about regional military confrontation.
Gold spot prices rose 2.9 percent to USD 4,041.60 per ounce, posting the largest single-day gain since mid-August. December-delivery gold futures climbed 2.8 percent to USD 4,051.80 per ounce. The precious metals rally coincided with dollar weakness, as the U.S. currency index declined 0.06 percent to 101.41. Silver gained 4.4 percent to USD 51.94 per ounce, while platinum rose 3.6 percent to USD 1,466.30 and palladium increased 6.2 percent to USD 991.39.
Outlook:
Traders are monitoring whether crude prices stabilize above USD 90 per barrel or continue lower amid broader demand concerns. Gold investors are watching Federal Reserve policy signals and dollar trajectory, with precious metals positioning sensitive to shifts in real interest rate expectations.