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Daily Resources Overview
Gold prices are modestly higher in early-afternoon U.S. trading Wednesday. A more bullish technical posture on the charts and rising tensions in the Persian Gulf are working to support the safe-haven gold market this week. June gold futures were last up $2.10 an ounce at $1,298.40. July Comex silver was last up $0.008 at $14.82 an ounce.
Traders and investors are somewhat assuaged at mid-week following more upbeat comments from President Trump and China officials Tuesday that suggested the world’s two largest economies want an amenable resolution soon in their trade war.
However, the world marketplace at present seems to be overlooking a U.S. military build-up in the Middle East. President Trump may be preparing to send 100,000 or more U.S. troops to the region, to complement the U.S. naval task force steaming to the Persian Gulf. This week’s attacks on two Saudi oil tankers in the Strait of Hormuz showed that tensions in the region are on the rise—namely a U.S.-Iran stare-down. This situation is likely to move to the front burner of the marketplace in the coming weeks. The U.S. government has also warned U.S. citizens to get out of Iraq.
The key “outside markets” today see the U.S. dollar index slightly firmer. The USDX is not that far below its recent two-year high and greenback bulls still are still in firm technical control. Meantime, Nymex crude oil prices are a bit higher today and trading around $62.00 a barrel.