The recent easing of fears surrounding potential supply disruptions in the Middle East has led to a significant decline in crude oil prices. This decline follows Israel's military response to an Iranian missile attack, which did not target Iranian oil facilities. This strategic decision has sparked optimism among investors and prompted a reassessment of the geopolitical landscape and its impact on oil supply.
Analysts are closely monitoring key support levels in the crude oil market, including the early October low of $66.22 and the September low of $64.81.
Meanwhile, gold prices have remained resilient and continue to attract investor interest. The precious metal is consolidating below its record high, with minor support just above the $2,605.00 mark.
The interplay between inflation concerns, geopolitical uncertainties, and broader economic indicators is influencing the gold market.
Arabica coffee prices have shown signs of recovery, bouncing off technical support. Traders are watching the September-to-October downtrend line at 255.70, which, if surpassed, could lead to a test of the mid-October high of 263.20.
The coffee market is known for its volatility, and failure to maintain support within the 243.48 to 242.78 range could prompt a reevaluation of price trajectories.
Overall, market sentiment reflects cautious optimism as geopolitical tensions ease, and investors are adjusting their strategies accordingly. The focus remains on key support and resistance levels in various markets, with ongoing geopolitical developments and economic indicators influencing further price adjustments in oil, gold, and coffee.