We’ve had a declaration of progress in the war with Iran.
We’ve had a single-time release of strategic oil reserves.
And yet…
Oils up again.
Stocks are down again.
And the USD Index just moved to a new yearly high.
Why?
Because the markets may be emotional in the short run, but they are not stupid.
The Strait of Hormuz is closed, and there’s no indication that it would be re-opened anytime soon. The war is escalating, not ending.
Just look at this title: Iran begins laying mines in Strait of Hormuz, sources say.
Other reports indicate drone attacks on fuel tankers.
It doesn’t look like this war is going to end, and the balance in the crude oil market is going to be restored anytime soon. This means that the above price moves are likely to continue.
And as I emphasized multiple times – rallying USD and declining stocks are a very bearish combination for mining stocks and silver. Silver has its unique structural situation, but mining stocks could be hit particularly hard.
Much more follows in the full version of this analysis – in today’s Gold Trading Alert. Check out the current promo – you’ll like it.
Thank you.
Przemyslaw K. Radomski, CFA
Founder
Golden Meadow®