Skirmish in Gulf of Oman pushes Gold above $1,350

Skirmishes in the Gulf of Oman is scaring investors into haven assets again. In particular, Mike Pompeo, US secretary of state, pinned the blame on Iran for the attacks.

Gold is benefitting from this incident. At the time of writing, the yellow metal is trading at a multi-month high of $1,353. Its latest advance surpassed the February resistance highs of $1,346. Within the precious metal space, Palladium is exhibiting the second best chart action. Prices affirm price support at $1,300.

The Japanese Yen is also strengthening somewhat. Against the USD, the rate has encountered resistance near 109.0 to regress near its multi-week lows. Meanwhile, gov bonds, such as TLT, remain near their long-term highs.

What next? Will this jittery spread to the stock market?

Technically, major stock indices are still developing long-term top formations. For example, Dow has not had a genuine upside breakout in 18 months. Prices did edge to new highs last September but this was a failed breakout (see Dow ETF below). Thus I expect stock market indices to maintain their sideways trends in the near term.

 

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