Edition · Thu 05 Nov 2026
Commodities Desk
Oil Sinks to Its Lowest Since August as Gold Posts Its Best Day in Months
Crude fell nearly 9 percent on Wednesday as traders bet the midterm shock would push Washington toward ending the Iran war, and slipped again on Thursday. Gold, silver and platinum surged as the dollar and Treasury yields fell.
Not investment advice: this article is for information only.
By Rachel · Edited by Chanan Zevin - Chief Editor and Head of Desks
Published
Crude's sharpest drop
Oil prices collapsed on Wednesday as traders bet that the Republican defeat, and Vice President JD Vance's admission that the war caused it, would push the administration toward de-escalation with Iran. Brent crude, the global benchmark, fell 8.67 percent to settle at $94.62 a barrel, its lowest close since 31 August. West Texas Intermediate fell 8.29 percent to $88.12.
Crude's sharpest drop
Prices slipped again in Asian trading on Thursday, with Brent trading around $93.70 and WTI near $87, putting crude on track for a fourth straight day of losses.
The skeptics
Not everyone believes the war is ending. "Traders are betting that the administration is going to quit this war because the (midterms) shellacking was bigger than anyone expected," said Bob McNally, president of Rapidan Energy Group. "We're not buying it. We think escalation is more likely."
The skeptics
His caution reflects the mixed signals from Washington. President Trump has hinted that he could resume strikes now that the election is over, even as talks with Iran through Qatari mediators have picked up. Before the vote, Iran had offered to reopen the Strait of Hormuz within two days if its conditions were met. Any deal on the strait would add supply; any new strikes could send prices sharply higher.
Gold shines
Precious metals moved the other way. Gold jumped about 3.4 percent on Wednesday, its biggest one-day gain since 19 August, as the dollar weakened and Treasury yields fell. On Thursday, spot gold traded around $4,130 an ounce, its highest level in about two weeks.
Gold shines
Silver traded around $53 an ounce, platinum near $1,528 and palladium around $1,030. Citi set a target of $4,500 an ounce for gold over the next zero to three months.
Gold shines
Even after Wednesday's jump, gold remains well below the levels it reached before the war began, according to market reports, a reminder of how much the conflict and the surge in interest rates have reshaped the metals market this year. A weaker dollar makes gold cheaper for buyers using other currencies, and lower bond yields reduce the cost of holding a metal that pays no interest.
What to watch
For energy traders, the key questions are whether the White House chooses diplomacy or force, and whether a deal on the Strait of Hormuz is within reach. For metals traders, the focus turns to Friday's US jobs report and the Federal Reserve, where futures markets still see a high chance of a rate increase in December.
What to watch
Cheaper crude, if it lasts, would ease costs for airlines, truckers and other fuel-hungry industries, and would take some pressure off inflation, which the Federal Reserve is still fighting.
What to watch
Lower fuel prices would be welcome news for American households after months of high costs at the pump. Whether that relief lasts depends less on the markets than on decisions in Washington and Tehran.