Metals are continuing their bullish trend, with the price of Gold rising firmly to reach a new record high at $4,600 during today's Asian session.
- Markets look very straightforward today: with internet cut off in Iran for over three days, there are reports of street fighting and a serious number of casualties, as it increasingly seems as if the regime in Iran is in trouble and might be overthrown soon. US President Trump continues to threaten intervention on the side of the uprising, and Iran has threatened US interests in the region and Israel. Markets are showing the prospect of a US or Israeli strike on Iran by the end of March at about 50%. These escalating geopolitical tensions, which will impact the USA, China, and Russia, and include President Trump's pledge to double US defense spending, seem to be driving the prices of precious metals higher, although all metals are in a bullish trend lately anyway. Gold reached a new all-time high earlier today and Silver has also risen very strongly, by over 5%.
- Here is the picture metal by metal:
- Gold - peaked at $4,600 and is now trading within sight of that high after making a retracement. If it makes a bullish close today, I will be buying some just before the end of the New York session.
- Silver - rising very strongly and trading just below the big round number at $85. Its all-time high is below $86 and easily within sight of today's potential price action.
- Platinum - up by more than 3%.
- Palladium - up by more than 3%.
- Copper - up by more than 2.5%. Trend traders will already be long here. CME micro futures in copper are available, sized at about $15,000. If that is too big for you, the CPER ETF could be an alternative, or your broker may offer a smaller spot contract.
- Aluminum - opened higher but trading sideways. Futures contracts are large in size, but the ALUM ETF could be an alternative, or your broker may offer a smaller spot contract.
- Trend traders will likely be long of Silver, Copper, and Aluminium already, and may be buying Gold at the end of today.
- In the Forex market, since today's Tokyo open, the strongest major currency has been the Swiss Franc, and the weakest has been the Japanese Yen. The USD/JPY currency pair made a bullish breakout at the end of last week and is again trading above the ¥158 handle, briefly making a new 11-month high price. I have been long of this currency pair for a while.
- There are no scheduled high-impact data releases, but markets feel more volatile today then they did at last week's open.