Oil prices regained some ground during Asian trading following sharp declines in the previous session, supported by renewed concerns over supply security in the Gulf after reports of a U.S. strike on Iran’s Qeshm Island. Brent crude futures climbed to $105.46 per barrel, while West Texas Intermediate crude rose to $97.23. The recovery reflects the oil market’s continued sensitivity to geopolitical developments, particularly given Qeshm Island’s strategic location near the Strait of Hormuz, a vital passage for global oil shipments.
The modest rebound followed a decline of more than 7% in Brent crude during Monday’s session, after statements from U.S. and Iranian officials suggested potential progress in diplomatic negotiations. These developments prompted investors to reduce the geopolitical risk premium associated with the possibility of a broader military confrontation. Despite ongoing diplomatic contacts mediated by Qatar, the absence of a clear agreement ensuring stable shipping operations and energy flows continues to expose crude prices to sharp fluctuations. Brent’s ability to hold above $105 per barrel remains a key factor to monitor in upcoming sessions, as sustained trading above this level could support a continued recovery in the short term. Conversely, easing geopolitical tensions could renew selling pressure, particularly if stronger indications emerge that a political settlement is approaching.
Gold came under renewed selling pressure during today’s trading, with spot prices falling to $3,920 per ounce, while U.S. gold futures declined to $3,929, despite a slight decrease in the U.S. Dollar Index to 101.75 points. The downturn extended across the precious metals market, with silver dropping 2.8% to $49.25 per ounce, reflecting continued weakness in investor appetite for precious metals during the current trading session.
The decline followed a 1.9% increase in gold prices during the previous session, when the metal benefited from falling oil prices and a corresponding easing of inflation concerns, which reduced expectations of further monetary tightening. However, this support proved insufficient to sustain the gains amid continued liquidation of investment positions, particularly following declines in technology and artificial intelligence stocks. Gold ended October with a 6.8% decline after breaking below the psychologically important $4,000 per ounce level and reaching its lowest point in a year, highlighting the persistent downward pressure on prices in the short term.
From a technical perspective, the $3,900 to $3,950 range represents an important area to monitor in the coming sessions. A recovery above $3,950 could improve the prospects of a rebound toward $4,000, while continued trading below this level may leave gold vulnerable to further selling pressure. At the same time, several momentum indicators have entered oversold territory, while improving physical demand from Asian markets, particularly China, could help limit additional declines. The outcome of the U.S. midterm elections, developments in negotiations with Iran, and expectations surrounding U.S. inflation and interest rates remain the main factors likely to shape gold’s price direction in the coming period.
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