Oil price drops 6% on hopes of Middle East de-escalation, gold stays bid while Arabica Coffee bounces off support
Oil price drops 6% on hopes of Middle East de-escalation as Israel’s retaliatory strike avoided Iran oil facilities, gold stays bid while Arabica Coffee prices bounce off support.
Crude oil price drops 6% on easing fears of supply disruptions
Israel’s weekend military response to Iran’s missile attack on its territory by not targeting Iranian crude oil facilities has provoked a so far 6% drop in the WTI front month futures crude oil price. The early October low at 66.22 is back in the frame amid Middle East de-escalation hopes but together with the 64.81 September low may offer support in the days to come.
Above the 18 October low at 68.22 Monday’s price gap can be seen between Friday’s 69.93 low and Monday’s 68.79 intraday high.
Gold price consolidates further below record high
The spot gold price remains within its long-term uptrend and is still consolidating below last week’s $2,758.00 per troy ounce record high. Above it sits the 261.8% Fibonacci extension of the September 2022 low to the May 2023 advance, projected higher from the October 2023 low, at $3,005.71. The psychological $3,000.00 mark and this technical level represent the next long-term upside target zone for the gold price as long as the $2,605.00 early October low underpins.
Minor support above $2,605.00 can be seen at last week’s $2,709.00 low ahead of its previous September all-time high at $2,685.00 and also along the August-to-October uptrend line at $2,655.00.
Arabica coffee price bounces off technical support
Arabica coffee front month futures prices last week managed to level out at 243.48, slightly above their early October low at 242.78, with the September-to-October downtrend line at 255.70 being back in sight. If bettered, the mid-October high at 263.20 would be eyed.
Currently unexpected failure in the 243.48-to-242.78 support zone would push the October 2023-to-October 2024 uptrend line at 227.20 to the fore.
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