Gold has cracked the March low.
The spike low early in the war was $4097 and we’ve just broken through it. That puts gold back where it was in late November and — needles to say — lower for the year.
The war and the risk mood aren’t helping. US equities are also at the lows of the day, with the S&P 500 down 108 points, or 1.4%. There was a brief bounce in stocks and gold after the US CPI report but it’s faded as war fears have mounted.
Trump said the US would strike Iran “very hard” and we continue to wait for that. It was odd to forewarn them and maybe there is a signal there but maybe not. The problem with escalation and a fresh spike in oil prices is that it may force some emerging markets to sell gold reserves to support their currencies or to pay for the oil.
That was clear early in the conflict when Turkey sold $120 billion in reserves.
Gold daily
