Geo Political Situation Moving Prices + Futures Trading Levels for Oct. 19th
Posted By:- Ilan Levy-Mayer Vice President, Cannon Trading Futures Blog
Geo political situation is taking over….
By Senior Broker, Mark O’Brien
The conflict in the Middle East once again demonstrates the potency of geopolitical events in influencing commodities prices – to the degree that they can overpower other conventional fundamentals.
One notable move: on the Sunday, Oct. 7th opening of trading, Dec. gold gapped up ±$16 from its Friday $1845.2 close (and an 11-month intraday low of $1823.50) and today is flirting above $1950 per ounce.
Obviously, the most significant event in the midst of the conflict is the overnight hospital bombing in Gaza. That effectively nullified U.S. Secretary of State Antony Blinken’s week-long travels meeting with Arab leaders to try to ease tensions. Cancelled was a summit planned in Jordan on Wednesday between President Biden, King Abdullah II of Jordan, Egyptian President Abdel Fattah el-Sissi and Palestinian President Mahmoud Abbas. All this increases the prospects of a broadening of the participants in the conflict and keeping it the focal point among commodities.
What events like those in the Middle East can also do is amplify market movement established by conventional fundamentals. Futures markets already sensitive to global geopolitical events – energies, precious metals, stock indexes, interest rates in particular – can react excessively in the face of the compounding happenings going on.
Keep this mind in your trading. Be aware of the potential for expanded price ranges and sharper market turns.
Plan your trade and trade your plan.
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Futures Trading Levels
10-19-2023
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