Gold up on rising global geopolitical, economic tensions
DAILY MARKET REPORT
Gold was off to a rousing start this morning after a strong showing in Europe overnight then ran into resistance at the COMEX open. It is still up nearly $6 on the day at $1318.50, but got as high as $1322.50 in European trading. Silver is up 20¢ at $16.72.
In Europe, concerns are elevated that the U.S. has the power to enforce sanctions against European companies doing business in Iran and, as a result, put pressure on oil prices. Beyond the sanctions themselves, the threat of a military confrontation between the United States and/or Saudi Arabia or Israel and Iran has given markets globally a case of the jitters. Too, the consumer price index came in low dampening accelerated rate hike expectations. Even before Iran situation moved front and center, demand for gold was rising at the gold ETFs according to the World Gold Council. Funds and institutions are hedging their bets against what many see as an overvalued stock market and general geopolitical and economic instability on a number of fronts globally.
Quote of the Day
“There is a reason so many investors are increasingly becoming workaholics. We are operating in a world where feelings always run high and ideas instantly become ideologies. Yet, no one really seems to believe in much of anything. . . .Go away for a few days and it has become almost a parlor trick to be able to guess where markets will be…And the worst mistake you can make in trying to pull that off is following the news, but not the price action, while away.” – Richard Breslow, Bloomberg strategist
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