Developments in Qatar will be closely watched. Energy is the root cause of all Middle East wars. After Qatar, Oman will be left. Oman could also start turning into a Yemen from next year. The so called energy war in the Middle East is a joint effort by the Saudi’s and NATO to make new nations including expansion of Israel. Iran is a powerful nation and also has the support of Russia. The Syrian war changed when Russia started intervening. NATO forces are no match for Russian weapons. Gold will get the benefit of doubt. Unofficial physical gold demand in the Middle East will zoom.
Technically gold and silver are bullish but need to break and trade over $1293 and $1776 for another wave of rise. Bloomberg survey says a ninety percent chance of an interest rate hike next week. There is speculation of preponement of German elections so that Merkel cashes in on the increase in voter sympathy towards her. I am not sure whether political developments in the Eurozone and the UK will support gold in the medium term. But any increase in political unrest in Europe will support gold.
This post was published at GoldSeek on 6 June 2017.
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