Oil and gold send conflicting signals on Iran war angst. US dollar climbs

President Trump is meeting with his national security team this morning about the Israel-Iran war in the White House Situation Room, two sources with knowledge told Axios.

Trump leaving the G7 early and saying that he doesn’t want a ceasefire in Iran has the market worried that the US will soon begin dropping bombs. There are ample signs pointing in that direction, including a US aircraft carrier heading to the Middle East.

Oil prices are rising again today, up nearly $2 despite the earlier false alarm in the Strait of Hormuz. That points to worries about war but gold is sending the opposite signal as it falls $9 and just touched a session low.

In the FX market, the US dollar is rising and I take that as a signal around a flight to safety, though the bond market isn’t making big moves today. All of this makes it very hard to read the tea leaves and I think the best move right now is to carefully watch for headlines and be ready to act quickly.

This article was written by Adam Button at www.forexlive.com.