Zaid Admani

We haven't seen a rally like that since early February.

The catalyst, of course, was a true social post from President Trump on Monday morning, where he said the US and Iran have had very good and productive conversations about a resolution, and that he ordered a five-day pause on strikes against Iran.

So

the markets finally got the taco rally that it was hoping to get.

Now, what's funny here is that Iran denied any talks were happening with the US, but then at the same time, there are reports that the two sides are meeting in Pakistan today to kick off negotiations.

So we have a bit of a he said, he says situation, but the market is choosing to be a bit optimistic for now.

We also saw this with oil prices.

They tanked yesterday with Brent crude dropping 10% to $99 a barrel.

It was the first time that prices have been under a

Now we'll have to see how long this optimism lasts.

Personally, I wouldn't be surprised to see oil prices stay elevated until the Strait of Hormuz is back to being fully open.

Now moving beyond oil, let's talk about gold real quick, because it's something that I get asked about the most in real life day-to-day conversation.

Gold prices are down 20% since peaking at $5,600 an ounce back in January.

Now, this might be kind of confusing because most people thought that a war breaking out and a higher inflation risk would cause gold prices to go up because of gold's reputation for being a safe haven asset.

Well, the thing is gold is also heavily influenced by interest rates.

Higher interest rates makes gold a less attractive investment.

And right now, the market is a bit worried that the Federal Reserve might be forced to raise interest rates because of a potential resurgence of inflation due to higher oil prices.

So that's one reason why gold is in a bear market right now.

This could just be a temporary pullback, but I'm definitely keeping my eye on it.

Big picture, I think we're gonna continue to see volatile trading until there is a concrete resolution to the Iran war and the Strait of Hormuz is fully open.