Oil prices fell about 9 per cent on Wednesday and gold climbed back above $4,000 an ounce as markets reacted to the Democrats’ sweep of the US midterm elections, Reuters reported in stories carried by The Express Tribune. In Pakistan, gold jumped Rs13,900 per tola.
Oil: the biggest drop in weeks
Brent futures dropped $9.27, or 8.9 per cent, to $94.29 a barrel, touching the lowest level since September 4, at 1658 GMT. US West Texas Intermediate fell $7.44, or 7.8 per cent, to $88.54. Trading was volatile as investors waited to see what Washington does next in the US-Israeli war with Iran after President Donald Trump’s Republican Party lost control of Congress.
Earlier in the session Brent had been trading above $104, as we reported in our story on the KSE-100 crossing 170,000. Traders had also been watching the president’s remark to the Financial Times that the US had no immediate plans to strike Iran.
Trump acknowledged that the Iran war played a part in his party’s defeat. Iran’s supreme leader, Ayatollah Mojtaba Khamenei, said in a written statement that American hostility would continue whichever party was in power; see our report on his statement. Carl Larry, who leads the trading and North America risk team at Enverus, told Reuters: “I’m more concerned that we can see an escalation in Iran sooner than a resolution.”
Wall Street: a relief rally with exceptions
US stocks climbed broadly as the Democrats’ sweeping victory eased political uncertainty and lifted appetite for risk. The prospect of fewer sweeping legislative changes helped some large technology stocks. Companies tied to the AI infrastructure build-out fell, and data-centre shares slipped on fears of tighter AI regulation. The dollar weakened against most currencies, and yields on long-dated US Treasuries moved lower.
Defence stocks Northrop Grumman, RTX and Lockheed Martin fell sharply, since Trump’s $1.5 trillion budget request could now face a tougher road in Congress.
Gold: back above $4,000
International gold gained $139 to $4,035 an ounce, according to the Tribune. Spot gold rose 2.9 per cent to $4,040.15, and US gold futures for December delivery gained 2.8 per cent to $4,049, Reuters data showed. The rally pushed the metal back above the $4,000 mark after it fell to $3,869.85 on October 30, its lowest level since October 2025.
The reason was the dollar. After the Democrats secured both chambers of Congress, the dollar slid to a more than one-month low, which makes dollar-priced bullion cheaper for buyers using other currencies. Investors are also waiting for the next US nonfarm payrolls report for clues on the Federal Reserve’s interest-rate path.
Adnan Agar, director at Interactive Commodities, said the jump was partly driven by the election result. He said uncertainty around the Iran war and the chance of a ceasefire could move gold next, but cautioned that the conflict may not end soon. In his view the metal needs to cross $4,150 an ounce to show proper price stability, while a fall below $3,970 could put it under pressure again.
What it means in Pakistan
According to rates released by the All-Pakistan Gems and Jewellers Sarafa Association, the price of gold rose Rs13,900 to Rs426,036 per tola. The price of 10 grams rose Rs11,917 to Rs365,257. Local rates follow the international price and the rupee-dollar rate, so a firmer ounce price flows through quickly to jewellers.
Why it matters
For households, the oil drop is potentially good news: cheaper crude, if it lasts, would ease pressure on fuel and transport costs. We recently reported a petrol cut of Rs3.4 a litre and a diesel cut of Rs7.76. One day’s fall is not a trend, though, and traders say the direction depends on Iran. Buyers of gold for weddings or savings face a market that moved by more than 3 per cent in a day in rupee terms, so prices may keep swinging. What to watch is whether Brent holds below $100, whether gold stays above $4,000, and what Washington says about Iran in the next few days.
This article draws on reporting by The Express Tribune and Reuters.
Comments
Comments are reviewed by our editors before they appear. Please keep them civil and on topic. See our terms.
No comments yet. Be the first to share your view.