№ #291
Spot Gold XAU/USD4186.00▼ -0.21%
The weekend's biggest risk headlines produced the smallest gold response.
A tanker struck a mine and caught fire in the Strait of Hormuz with 22 crew rescued, the US hit a merchant vessel in the Gulf of Oman, and flows through the strait fell to about 8.5mn bpd, some 40% below normal. Spot opened 4195.24 and was trading near 4186 by the Asian afternoon — below Friday's 4194.65 settle. That is not a small reaction to a large event. It is the eighth consecutive time this cycle that a geopolitical premium has been offered to gold and not taken.