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Cuban Missile Crisis Repeat

Russian news agency TASS reports Russian Deputy Foreign Minister Sergei Ryabkov saying the stand-off between the U.S. and Iran is reminiscent of 13 tense days in Oct. 1962:

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Just to recap, bad feelings really ratcheted up between the U.S. and Iran when two tankers in the Gulf of Oman — off the shores of Iran — were mysteriously attacked on Jun. 13.

Then Iran shot a U.S. drone out of Iranian airspace (allegedly). And not just any drone: the Navy’s RQ-4A Global Hawk captures “massive surveillance” and costs more than an F-35 fighter jet.

So on Jun. 20, Trump tweeted he ordered but later aborted military action against Iran.

Which brings us to this morning when Minister Ryabkov says if the U.S. deploys its eastern European land missile system against Iran, “then the situation won’t just get more complicated, it will escalate right to the limit.”

What happens next?

We’re soliciting your opinions on what might lead to a repeat of the Cuban Missile Crisis.

Your Rundown for Monday, June 24, 2019:

Gold’s “Fresh Fuel”

“The rally in gold is picking up fresh fuel from investors,” Bloomberg reports.

Indeed. Gold’s now above $1,400 per ounce, approaching a six-year high.

And some key data points suggest cash is still streaming into gold:

  • ETF Holdings: Funds backed by gold increased their assets by 32 tons on Friday, the biggest increase since 2016…
  • CFTC Positioning: Hedge funds and other large speculators boosted their net long positions in U.S. gold futures and options to the highest since February 2018

So why’s money pouring into gold? Take your pick — impending Fed rate cuts? The U.S.-China trade war? U.S. dollar weakness and/or Iran and the U.S. on the brink of war?

There’s something to be said for gold as a safe haven… and analysts are forecasting gold $1,450 by the beginning of next year. (We think that price might come sooner.)

Market Rundown for Mon. June 24, 2019

S&P 500 futures are up 6.5 to 2,957.

Oil is up 39 cents to $57.82 per barrel.

Gold’s done it — broken above resistance to $1,411.50 per ounce.

Ditto for bitcoin: it’s added $46.65 to $10,902.64.

Have a good day. We’ll circle back tomorrow.

For the Rundown,

Aaron Gentzler

Aaron Gentzler

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Aaron Gentzler

Aaron Gentzler is the publisher of Seven Figure Publishing. He is also the editor of The Rundown. Aaron’s been with Agora Financial/Seven Figure Publishing for 13 years. He's been covering technology and markets for over a decade.

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