Gold is getting battered this morning, down around 1% on Hantec WebTrader. Normally when the Middle East flares up you'd expect a bid under bullion, but today the dollar is winning that tug-of-war.
The Strait of Hormuz incidents have actually boosted the dollar more than gold. Oil pushing higher is feeding inflation fears again, which puts rates higher-for-longer back on the table. Gold doesn't yield, so when the market starts prioritising interest rates over geopolitics, it gets dumped regardless of the headlines.
Funny how quickly the narrative shifts. Last month gold was the hedge. Today it's just a non-yielding asset in a world that suddenly cares about yield again.
Seeing it struggle near recent lows too. Failed to hold those highs and now looks rather heavy.
Are you shorting this weakness or buying the dip hoping the geopolitical bid returns? Because right now the macro story is absolutely crushing the safe-haven trade.