On evaluating the movements of the and amid emerging news flow – catching the attention of the traders on surging expectation over the U.S.-Iran issue, where the scenario looks grim again within the last few hours, hardly able to generate a reactionary move by the gold and silver futures, 7:43 pm (GST) looks quite different now.
At 7:38 A.M., Louis Juricic reported the US is ready to begin war on Iran by Saturday, explaining that the United States will be ready to begin a war on Iran by Saturday, according to a report from the Telegraph citing defense officials who briefed President Donald Trump, while at 8:22 A.M. Reuters reported Russia warns of escalating Iran tensions amid U.S. military build up, explained that Russia warned against an “unprecedented escalation of tension” around Iran on Thursday and urged restraint amid a U.S. military build-up in the region that a senior American official said should be complete by mid-March.
U.S. threats to bomb Iran, with the two sides far apart in talks on Tehran’s nuclear programme, have pushed up oil prices, and a Russian corvette on Thursday joined planned Iranian naval drills in the Gulf of Oman, a vital sea route for global energy.
But gold and silver futures look muted in terms of momentum as they need more confirmation before making a directional move, as they had lost suggesting that the ’geopolitical premium’ has faded this month. This concept, I have already discussed in my previous analysis Gold and Silver Flush Geopolitical Premium as Accumulation Window Opens.
I find that if the gold and silver futures hardly react over this news flow today and tomorrow, definitely still some hopes left on resolving this issue diplomatically as despite the regular threats by President Trump to start a military strike over Iran, has become a regular affair since a few weeks as he favours to resolve such issue with diplomatic ways while he keeps the direct confrontation at the last.
Undoubtedly, this weekend could bring a definite clue for the further directional moves by gold and silver futures as the President mostly reacts on weekends.
On the other hand, while a partial government shutdown has already been in place in the U.S. since last Saturday is likely to delay any decisive move by President Trump. Sentiments turned more cautious on Thursday after the announcement of the minutes from the Federal Reserve’s latest meeting highlighted divisions among policymakers over the interest-rate outlook.
While some officials flagged the possibility of further tightening if inflation proves sticky, others acknowledged conditions for eventual easing later in the year.
I have already explained the support and resistance levels for both gold and silver in my previous analysis today.
Undoubtedly, a breakout or breakdown will receive confirmation before this week’s closing as the overleveraged positions in gold and silver futures will not be carried over for the weekend.
