BEFORE THE BELL: US-Saudi conflict boosts oil and gold; Canadian pot stocks in limelight as legalization nears
A growing divide between the US and Saudi Arabia is weighting markets this morning. The Middle Eastern country has been accused of being involved in the death of a US journalist, which has sparked threats of severe retaliation from President Donald Trump. Analysts say this is likely to push North American markets down after a bounce back at the end of last week.
Crude prices are getting a boost from the tension though as US oil pushes to 71.76 a barrel.
Gold is also coming out on top as a safe haven option, growing to 1,234 an ounce, the highest it’s reached since July.
The Loonie is gaining to 76.83 cents US.
Traders will be keeping a close eye on pot stocks as legalization in Canada is just days away. Some reports suggest producers will not be able to keep up with demand, leading to many provinces running out of the product soon after starting to sell.
After its Canadian branch closed it’s last stores at the start of the year, Sears in the US is facing down the same fate. The company has filed for Chapter 11 bankruptcy protection.