Things are escalating again around the Strait of Hormuz. Iran’s move is nothing new, but with the midterm elections approaching, Trump will have a hard time responding.
$CL is now at 90.52, up just 1.14% in 24 hours. The market still isn’t really taking it seriously. That’s what makes this interesting—if it comes to blows and the Strait is blocked, a fifth of the world’s crude oil will have to be rerouted, and $CL could hit 100 in no time. At this price, it’s basically a free call option. Keep an eye on 92 as the key level; a break above it could accelerate the move.
$XAU 4181.73, +0.94%. Safe-haven flows are still lukewarm. Gold is moving with geopolitics this time; if things really escalate, 4300 isn’t far away.
As usual, the market initially acts as if nothing’s happening, then reacts only after the first tankers actually run into trouble. By then, getting in will cost more than it does now.
$CL $XAU : one is a bet on the Strait, the other on panic. Different rationales, but both point upward. Don’t wait until it’s on the evening news to make a move.
#Gold
$CL is now at 90.52, up just 1.14% in 24 hours. The market still isn’t really taking it seriously. That’s what makes this interesting—if it comes to blows and the Strait is blocked, a fifth of the world’s crude oil will have to be rerouted, and $CL could hit 100 in no time. At this price, it’s basically a free call option. Keep an eye on 92 as the key level; a break above it could accelerate the move.
$XAU 4181.73, +0.94%. Safe-haven flows are still lukewarm. Gold is moving with geopolitics this time; if things really escalate, 4300 isn’t far away.
As usual, the market initially acts as if nothing’s happening, then reacts only after the first tankers actually run into trouble. By then, getting in will cost more than it does now.
$CL $XAU : one is a bet on the Strait, the other on panic. Different rationales, but both point upward. Don’t wait until it’s on the evening news to make a move.
#Gold