Crude oil adds to gains, gold touches new record high after Israel strikes Hamas in Qatar

[Data analyzing in commodities energy market: the charts and quotes on display. US WTI crude oil price analysis. Stunning price drop for the last 20 years.]
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Crude oil futures extended gains and gold edged up to a fresh all-time high Tuesday after Israel carried out an attack on Hamas leadership in Qatar's capital Doha, in an escalation of the conflict in the region.

The Israel Defense Forces announced the strike in a social media post, accusing the targeted leaders of being "directly responsible" for the massacre of Israelis on October 7, 2023.

U.S. WTI October crude (CL1:COM [https://seekingalpha.com/symbol/CL1:COM]) +1.7% to $63.31/bbl after touching a seesion high of $63.64/bbl, and November Brent crude (CO1:COM [https://seekingalpha.com/symbol/CO1:COM]) +1.6% at $67.07/bbl after reaching as high as $67.38/bbl, while most-active December Comex gold (XAUUSD:CUR [https://seekingalpha.com/symbol/XAUUSD:CUR]) +0.1% at $3,681.90/oz.

Both contracts already had sported gains, supported by the smaller than expected oil production increase from OPEC+ and concerns over potential new sanctions against Russia.

"The immediate reaction of a spike in crude benchmarks and some further upside in spot gold makes considerable sense," Pepperstone analyst Michael Brown said, but he expects crude's rally to "fade relatively rapidly, as we've tended to see with geopolitically-induced gains over the last few months, as focus... returns to the fundamentals of an already-oversupplied market, into which OPEC+ are adding even more barrels from the start of next month."

ETFs: (NYSEARCA:USO [https://seekingalpha.com/symbol/USO]), (BNO [https://seekingalpha.com/symbol/BNO]), (UCO [https://seekingalpha.com/symbol/UCO]), (SCO [https://seekingalpha.com/symbol/SCO]), (USL [https://seekingalpha.com/symbol/USL]), (DBO [https://seekingalpha.com/symbol/DBO]), (DRIP [https://seekingalpha.com/symbol/DRIP]), (GUSH [https://seekingalpha.com/symbol/GUSH]), (USOI [https://seekingalpha.com/symbol/USOI]), (GLD [https://seekingalpha.com/symbol/GLD]), (IAU [https://seekingalpha.com/symbol/IAU]), (NUGT [https://seekingalpha.com/symbol/NUGT]).

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