Saudi-west tension sends gold up, dollar down

The case of the missing journalist Jamal Khashoggi has hit the nerves of the markets around the globe.

It brought down the US dollar, while gold picked up as if it is following the oil prices that are up too.

The dollar touched a two-week low against peers, while Treasury yields steadied, according to Bloomberg.

The musical chair type of reactions of the commodities has also the Japanese and Swiss currencies up. But the stock markets are taking a beating.

Seeking Alpha says it is an interesting week for Gold (GLD), with the yellow metal finally stirring from its 2-month slumber.

The portal said the time might just be ripe for Gold’s time to shine.

Reuters said oil prices rose as the Saudi-West rift bears its influence on looming Iran sanctions that might dry the wells.

The sanctions may cause panic reactions in the world’s oil markets with a shortage of supply expected.

And if the Saudis act on their word in a tit-for-tat response against any possible economic aggression from the west, oil might fire up.

The west did not show any sense of appeasing after Saudi Arabia’s King Salman on Monday ordered an internal probe into the unexplained disappearance of Jamal Khashoggi.

The Western media are echoing the Turkish government’s version of the events. It says the journalist, who recently turned against the Saudi government, was butchered in the Saudi consulate in Turkey.

There is no evidence of such a crime but the absence of the journalist since Oct 2 is an indication something horrible might have happened.

Nevertheless, US crude rose 0.48 percent to $71.68 per barrel and Brent was last at $80.76, up 0.41 percent on the day, says Reuters.

Asian stocks chalked modest gains at the open Tuesday while the KLCI was down 1.19 points or 0.07% to 1,727.55. Turnover was 79.20 million shares valued at RM38.81 million.

Investors are balancing the outlook for global growth and earnings against geopolitical flare-ups and technical weakness.