
On Wednesday, despite safe-haven demand due to the US elections and Middle East conflict, rising US Treasury yields and a stronger dollar weighed on gold prices. Gold surged to an intraday high of $2758.33 before sharply retreating, momentarily falling below the 2710 level and closing at $2715.43 per ounce. Meanwhile, oil prices dropped over 1% as US crude oil inventories grew more than expected.
Gold
Gold surged to a record high of $2758.33 per ounce on Wednesday, driven by safe-haven demand stemming from US election uncertainties and the ongoing Middle East conflict. However, it sharply retreated as the US dollar strengthened and Treasury yields climbed, ultimately closing down 1.21% at $2715.43 per ounce.
The US dollar index extended its rally, marking gains for the 16th time in the past 18 days, hitting its highest level since July 30 at 104.57 before closing up more than 0.3% at 104.42. This rise in the dollar diminished gold’s appeal to holders of other currencies, putting pressure on the yellow metal.
Meanwhile, a string of positive economic signals dampened market expectations for a significant Fed rate cut in November, pushing US Treasury yields higher. The Federal Reserve’s Beige Book, released on Wednesday, indicated little change in overall economic activity from September through early October, with businesses continuing to add jobs.
The 10-year US Treasury yield rose by 3.4 basis points, hitting a three-month high of 4.26% before closing at 4.24%. After falling for five consecutive months, the yield has surged by around 40 basis points since the start of October. Senior market strategist Bob Haberkorn from RJO Futures noted that profit-taking and rising yields are weighing on gold, adding that as long as yields remain elevated, it will be difficult for gold to rally.
Despite these pressures, analysts believe that short-term dip buyers and safe-haven demand could provide support, limiting the downside for gold amid ongoing US election and geopolitical uncertainty.
For today, investors should watch for US initial jobless claims and October PMI data from the US and Europe, along with any updates on the US elections and Middle East tensions.
Gold Technical Analysis:
Gold initially dipped below $2740 before rebounding in the European session, reaching an intraday high of $2758. The price then reversed sharply during the US session, breaking through the 2740 and 2730 levels before stabilizing around $2708. The daily candlestick closed as a bearish engulfing candle, indicating potential resistance around $2758. In the short term, traders may look to trade within the $2708–2740 range, with $2700 being a key support level.

Today’s Focus:
- Consider selling into rallies and buying on dips.
- Key resistance levels: $2730–2740
- Key support levels: $2700–2692
Oil
Oil prices fell over 1% on Wednesday, ending a two-day rally after US crude oil inventories grew much more than expected. By the close, WTI crude for December delivery was down 1.35% at $70.77 per barrel, while Brent crude fell 1.42% to $74.96 per barrel.
The US Energy Information Administration (EIA) reported an increase of 5.47 million barrels in crude oil inventories for the week ending October 18, far surpassing market expectations of a 270,000-barrel rise. The larger-than-expected inventory build weighed on oil prices.
Meanwhile, the geopolitical situation in the Middle East remains uncertain. According to NBC, Israeli officials are considering a small-scale ceasefire proposal from Egypt to pave the way for a larger agreement with Hamas. This comes as US Secretary of State Antony Blinken arrived in Israel to restart diplomatic efforts.
Data also revealed that oil traders are holding a record number of options contracts to hedge against potential supply disruptions in the Middle East. Brent crude options open interest recently exceeded 4 million contracts, representing 4 billion barrels of oil, with positions increasing by more than 25% this month.
Today’s Focus: Investors should continue to monitor developments in the Middle East and watch for US initial jobless claims and EIA crude oil inventory data.
Oil Technical Analysis:
Oil prices experienced a volatile session, initially dipping to $70.1 before rebounding in the US session. Prices briefly broke through $71.4 before retreating again to close just above $70. The daily candlestick formed a small bullish pattern, suggesting support at the $70 level.

Today’s Focus:
- Consider buying on pullbacks and selling into rallies.
- Key resistance levels: $73.0–74.3
- Key support levels: $70.9–70.0
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