Gold and silver bulls are in the driver’s seat at mid-summer, and a pause in near-term price uptrends would not be surprising this week.

Asian and European stocks were mixed overnight. U.S. stock indexes are pointed toward slightly higher openings when the New York day session beings. The U.S. indexes hit record and contract highs last week.

Geopolitical tensions are higher to start the trading week, on news that Iran’s military late Friday seized a British oil tanker near the Strait of Hormuz, apparently in response to the U.K. capturing an Iranian vessel a couple weeks ago. Iran’s confrontation with the U.S. and the U.K. will probably escalate in the coming weeks, with the concern in the marketplace being a major U.S. military strike against Iran, which could disrupt oil shipping in the Persian Gulf. Such would be bullish for the safe-haven metals.

Focus of traders and investors remains on the major central banks of the world and their lean toward more accommodative monetary policies amid worries about slowing global economic growth. The European Central Bank holds its regular monetary policy meeting on Thursday. Next week, the U.S. Federal Reserve’s Open Market Committee (FOMC) has its money policy meeting. Both central banks are expected to ease their monetary policies at the meetings. That’s also a bullish scenario for the metals.

U.S. economic data due for release Monday is light and includes the Chicago Fed national activity index.

Posted by :

Jack Dempsey, President

401 Gold Consultants LLC

jdemp2003@gmail.com