Gold, silver firmer as safe-haven demand up-ticks
NEW YORK (March 24) Gold and silver prices are posting modest gains in early U.S. trading today, as some safe-haven demand has returned to the two precious metals. After Monday’s hopes for a de-escalation in the Middle East war, today finds the general marketplace reckoning such is not occurring. A higher U.S. dollar index today, rising bond yields and worries about global inflation are limiting the upside in the metals markets. April gold was last up $8.40 at $4,415.00. May silver prices were up $0.79 at $70.13.
Latest on the war in Iran…
-- Iran strikes Gulf countries as Monday’s de-escalation optimism fades
-- Trump delays energy strikes on Iran, sets five-day deadline for Iran talks
--Crue oil edges back higher as de-escalation hopes fade --Iran continued attacks on U.S. bases in Gulf; Israel and Tehran trade fire--Kuwait says 7 power lines down due to falling debris from missile, drone attacks --Pakistan making push to mediate talks to end the war, held discussions with Trump--Iran maintains there have been no negotiations with U.S.--U.S. marines heading for the Middle East--Saudi Arabia, UAE hardened their stances against Iran; Saudis may strike Iran--Crude oil from U.S. strategic reserve started flowing Friday, said Energy Department--Chinese-Owned oil tanker transits Strait of Hormuz along Iranian coastal route
Euro zone economy may be slipping into stagflation. “Private-sector activity in the Euro area rose at the slowest pace since last May as the Iran war stokes inflation while endangering a nascent economic recovery,” Bloomberg reported today. The Composite Purchasing Managers’ Index compiled by S&P Global dropped to 50.5 in March from 51.9 the previous month, though held above the 50.0 threshold separating growth from contraction. Analysts had predicted a dip to 51. Germany, the region’s biggest economy, saw its composite reading slip more than anticipated while also staying above 50. “The flash Eurozone PMI is ringing stagflation alarm bells as the war in the Middle East drives prices sharply higher while stifling growth,” Chris Williamson, chief business economist at S&P Global Market Intelligence, said Tuesday in a statement and as reported by Bloomberg.
The key outside markets today see Nymex WTI crude oil prices higher and trading around $90.00 a barrel. The U.S. dollar index is higher early today. The yield on the benchmark 10-year U.S. Treasury note is presently 4.4 percent.
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