Stability of Oil and Gold Prices as U.S. Elections and Middle East Tensions Approach

Oil and gold prices have remained stable in the markets amid escalating geopolitical tensions in the Middle East
and anticipation of the U.S. presidential elections.
Market movements reflect concerns about the election results and their potential impact on global economic policy,
as well as the effect of political decisions on energy supplies and precious metals.

Content:

Oil
Gold
Outlook
Conclusion

Oil:

Oil Price Stability:

Oil prices stabilized after a 3% rise, with West Texas Intermediate (WTI) trading near $72 per barrel.
This stabilization followed a significant surge in the previous session, driven by OPEC+’s decision to delay increasing oil supply,
along with rising tensions in the Middle East, particularly after Iranian Supreme Leader Ali Khamenei warned of harsh responses to the country’s enemies.

Since the end of June, U.S. crude oil has dropped by about 12%,
due to weak Chinese demand and increased production from the Americas, particularly the United States.
As a result, the OPEC+ alliance decided to postpone its plan to restore production levels,
leaving markets cautiously awaiting the U.S. elections and their potential impact on oil prices and global energy policies.

Gold:

Gold Prices Await Elections:

Gold prices remained steady as the decisive U.S. elections draw near, with the race between the main candidates still tight. This political uncertainty enhances gold’s appeal as a safe-haven asset, especially amid expectations that a win by Donald Trump could lead to rising inflationary pressures due to his promises of significant tariff hikes.

Gold prices have risen by about 33% this year, supported by accommodative monetary policies and central banks’ gold purchases. Geopolitical tensions have also contributed to this increase. Although gold stabilized at $2,736 per ounce, it remains about $50 below its highest level this year.

Outlook:

The Federal Reserve is widely expected to cut interest rates by a quarter percentage point in its upcoming meeting,
which could further support gold prices in the future.
Meanwhile, all eyes are on the outcome of the U.S. elections and their potential impact on global markets,
particularly in the energy and precious metals sectors.

Conclusion:

With geopolitical tensions persisting and uncertainty surrounding the U.S. election results,
markets are likely to remain volatile in the coming period.
Investors will continue to seek clarity on global economic policies and their effects on oil and gold.

Stability of Oil and Gold Prices as U.S. Elections

Stability of Oil and Gold Prices as U.S. Elections

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