Gold Dec '20 (GCZ20)
Gold Futures Market News and Commentary
The dollar index (DXY00) rose by +0.29% on Monday.  The dollar found support Monday on some safe-haven demand from escalating hostilities in the Middle East after the US and Iran traded attacks over the weekend. Also, Monday's stock market weakness boosted liquidity demand for the dollar. In addition, Monday's +9% surge in crude oil prices raises inflation expectations and could prompt the Fed to tighten monetary policy, a supportive factor for the dollar. The dollar added to its gains today after President Trump said the US is reinstating the Iranian blockade and stopping Iranian ships from using the Strait of Hormuz.Â
Over the weekend, the US launched fresh missile attacks against Iran, targeting Iranian air-defense systems, coastal radar sites, and missile and drone capabilities. Iran launched retaliatory missile and drone attacks at targets in Jordan, Bahrain, Kuwait, and Qatar. Iran also attacked two vessels attempting to transit the Strait of Hormuz.
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