Crude oil, gold and US dollar up on rising Mid-East tensions | MarketTalk: What’s up today? | Swissquote

Show notes

Capital flows into the safety of US dollar and gold this morning, while oil is up almost 4% after Hamas’ unexpected attack on Israel wreaked havoc in the region, and tensions have been mounting since then.
It is difficult to predict the extent of the price action on geopolitical shocks. The fact that the US and Iran are pulled into the turmoil hints that tensions may further escalate. From a price perspective, the $90pb level is expected to shelter decent offers in US crude, as escalation and prolongation of Mid-East tensions could be the final straw that could bring the world very close to the brink of recession, and temper appetite for oil. It's too early to call.
Trading in Asia was mixed, stocks in Tel Aviv lost 6.5%, sentiment in Europe is sour and the US equity futures are down. Gold acts as a strong safe haven. The price of an ounce jumped past the $1850 level this morning, and further escalation of tensions should drive capital into the safety of gold.
This week, the market attention will shift to the big bank earnings, and to the latest US inflation update.
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