A softer dollar helped push the precious metals modestly higher Tuesday.
Spot gold was up 0.3% to $1,211 per ounce
The silver price added 10¢ (+0.65%) to $15.35/oz
Meanwhile, platinum and palladium each advanced better than 1.0%.
Sanctions Bite Iran
The big geopolitical development Tuesday also had major implications for the world's financial markets.
U.S. sanctions against Iran were reimposed by the Trump administration following the withdrawal from the multilateral pact to curb the country's nuclear program. The snap-back of sanctions against companies and governments that deal with Iran went into effect today.
Included in the sanctions is a bar on Iran trading gold on the international markets. Gold demand in Iran has tripled in anticipation of the sanctions.
One sign of the negative sentiment toward gold this summer is the fact that short positions in gold futures are at a record-high. The data has been tracked since 2006.
In addition to the yellow metal being oversold, the weaker dollar this morning is lifting gold prices.
Dollar Dips, Commodities Rally
Elsewhere in the Middle East, the Turkish lira slumped to an all-time low against the USD. Nonetheless, the dollar index fell about 0.25% to 95.1.
In turn, the euro was up 0.3% to $1.159 and the Japanese yen gained 0.2% to ¥111.2 per dollar.
Britain's pound sterling remained flat below $1.295 as the outlook for an amicable Brexit deal continues to sour.
The softer dollar also helped oil prices break out of their tight range. Shanghai crude hit its highest level ever since being launched earlier this year, trading at 537.2 yuan per barrel ($78.66/bbl).
This was even higher than the Brent crude benchmark, which rose 1.3% to $74.70/bbl.
After trending higher to begin the week, Treasurys fell this morning. The 10-year yield was up three basis points to 2.97%.
Global stocks were up sharply across the board: Wall St rose as much as 0.6%, European indices rallied about 1.0%, and shares in Shanghai closed 2.9% higher.
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