Key insights
- The author questions why gold and commodities are declining despite the Iran war, expecting geopolitical uncertainty and potential inflation to drive gold prices higher. The rising dollar and bond yields are noted as possible factors, suggesting investors may be favoring bonds over gold as a safe haven. This indicates a short-term bearish sentiment towards gold due to perceived strength in the dollar and bond market.
I guess I dont understand the elusive mojo for gold. Gold has gone down since the Iran war started and the dollar has gone up. Commodities have gone down. Why? I see the war as harmful. SO:
I can understand commodities, because the war is reducing consumption. So copper ect is down. Right?
But gold? I would think: war drives up deficit=insecurity in US and buy gold. Also oil war = inflation=rising gold. I do see a correlation of the dollar increasing and gold decreasing. But why is this happening? I thought investors would get spooked and buy more gold. are people buying bonds instead of gold? I do see the 10 year increasing. I am confused.