Gold and Silver still bullish on weaker USD – Oil higher on Lebanon and Iran aggression [Video]

Brad Alexander FX Large Limited

All this month USD has been getting weaker, and this has helped the price of Gold and Silver.

However, that’s not the whole story.

In today’s Market Outlook, let’s take a look at Forex trading on Gold, XAUUSD, Silver, XAGUSD, GBPUSD, EURGBP, WTI and Brent Crude Oil.

There are 6 reasons that investors are heading to gold as a safe haven:

US fiscal deficits are increasing, and political turmoil isn’t helping.

Treasury supply of T-bills and investors are becoming increasingly nervous about the US bond market.

Inflation, which is a direct result of crazy tariffs and energy costs because of the Iran war.

Geopolitical risk is still high, not just in the Middle East.

Diversification away from US assets is important for many investors for financial and political reasons.

Many central banks are changing their FX reserve holdings from USD and going to other currencies and gold.

Many analysts are eyeing $4,500 soon and $5,000 later in the year.

This may actually get worse after tomorrow’s FOMC, so keep an eye on the economic news.

Also, we see UK CPI tomorrow, so watch your calendars and some News Catalyst Fade moves on GBP pairs.

You will note this huge dip in EURGBP caused by a US Treasury report late last night.

Also, as we saw on the calendar, yesterday’s UK claimant count was positive for GBP, and our indicators caught the point of reversal here.

On other GBP pairs, we see GBPUSD in an uptrend retracing toward the lower trendline, so we will wait to see if our indicators give us confirmation.

And, let’s take a look at Crude Oil.

As we try to follow trends, it becomes difficult with the turmoil between the US and Iran and the very restricted number of ships passing through the Strait of Hormuz.

Also, the latest jump is based on yesterday’s violence in Lebanon, so the price of oil isn’t just being dictated by the war in Iran.

Just keep your eye on the news regarding peace talks and threats of more aggression.

Author

Brad Alexander

FX Large Limited

Brad became fascinated with the Currency Markets from a young age and researched fundamental analysis.

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