Crude Oil Slip Before Iran Decision News By Neal Bhai MFA Technical Analyst

Gold Silver Reports (GSR) – Crude Oil Slip Before Iran Decision News By Neal Bhai MFA Technical Analyst — U.S. stocks slumped as utility and telecom shares fell. West Texas crude sank as much as 4.4 percent before paring the loss as a U.S. official said Trump would quit the accord. The greenback strengthened for a third day. Ten-year Treasury yields approached 3 percent after JPMorgan Chase & Co. Chief Executive Officer Jamie Dimon warned a climb to 4 percent may be coming.

“Crude Oil headed to its biggest drop in a month as traders digested reports that President Donald Trump will pull out of the Iran nuclear deal. The dollar rallied and Treasury yields pushed higher”.

Concern about an increase in geopolitical tension is weighing on global sentiment at the same time worries about pricey stocks and rising borrowing costs are migrating to the developing world, where higher Treasury yields and a stronger dollar could sap demand. Fresh sanctions on Iran could potentially disrupt supplies from OPEC’s third-largest producer.

“Our take is that no matter what gets announced, that will just be the beginning of negotiation,” Lori Heinel, the deputy global chief investment officer at State Street Global Advisors, said in an interview at Bloomberg’s New York headquarters. “And as long as there’s a certain amount of negotiation, the chances of an extreme outcome, an extreme collapse in supply for example, is off the table.”

Argentina’s peso pared losses after the government was said to be in talks with the International Monetary Fund for a $30 billion flexible credit line to help defend the currency after it dropped to a record. Italian shares tumbled on the prospect for fresh elections that may boost the chances of a populist government taking power. Indonesia’s rupiah sank to its weakest since 2015, and the nation’s government bonds slumped. Turkey’s lira hit another low and the country’s benchmark equity index fell. – Neal Bhai Reports (NBR)

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Neal Bhai has been involved in the Bullion and Metals markets since 1998 – he has experience in many areas of the market from researching to trading and has worked in Delhi, India. Mobile No. - 9899900589 and 9582247600

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