Market Drivers; US Session: Oil Rebounds, Gold Gains Amid Thanksgiving Holiday

Oil prices rebounded at the end of Thursday’s trading, benefiting from an exchange of accusations between Hezbollah and Israel over breaches of the ceasefire agreement reached in recent days.
Geopolitical tensions and related concerns, particularly affecting financial markets and oil, escalated after Israeli tanks shelled areas in southern Lebanon on Thursday.

Oil futures rose to $68.86 per barrel compared to the previous day’s close of $68.72 per barrel. US crude fell to its lowest level on Thursday at $68.24, compared to its highest level of $69.25. Brent crude rose to $73.17 per barrel, adding 34 cents or 0.5%. It is likely that oil gains were limited due to low market liquidity amid the Thanksgiving holiday. The Israeli army stated that the breach of the ceasefire agreement occurred when Israeli forces detected what they called “suspicious vehicles” in southern Lebanon.

The ceasefire agreement between the two sides came into effect last Wednesday, allowing residents of southern Lebanon and northern Israel to return to their homes after 14 months of conflict.

Gold took advantage of the Thanksgiving holiday to gain further against the US dollar, which has been trading in a narrow range since the American trading session opened due to low liquidity levels in the markets.

Gold futures rose to $2661 per ounce compared to the previous day’s close of $2633 per ounce. The precious metal fell to its lowest level on Thursday at $2652, compared to its highest level of $2683.

The US dollar continues to seek further gains during the Thanksgiving holiday but has not been able to achieve significant increases due to lower liquidity levels in the markets during the US market closure.

The Dollar Index, which provides a clear picture of the US currency’s performance against a basket of major currencies, rose to 106.17 points compared to last Wednesday’s close of 106.08 points. The index fell to its lowest level during the current trading day at 106.10 points, compared to its highest level of 106.42 points.