Possible Military Escalation in Syria Drives Gold Higher

by Christopher Freeburn | August 27, 2013 4:33 pm

Possible Military Escalation in Syria Drives Gold Higher

PreciousMetalsRecap Possible Military Escalation in Syria Drives Gold Higher[1]Gold rose sharply in Tuesday trading on rising concerns that the U.S. was moving toward military strikes against the forces of Syrian dictator Bashar al-Assad.

Reports circulated last week that the Syrian regime had used chemical weapons against rebel forces in the country’s brutal two-year civil war. Over the weekend, American officials appeared to accept the claims and began hinting at potential punitive measures against Syria. The U.S. position is in sharp contrast to that of Russia[2], an ally of the Syrian government, which has expressed skepticism about the alleged chemical attacks and has warned that U.S. intervention could have repercussions across the Middle East.

Gold futures for December delivery jumped 1.9% to $1,420.20 per ounce on Tuesday, according to CME Group[3]. Gold traded as high as $1,424 and as low as $1,395.20. Gold bullion closed in London at $1,418, according to BullionVault[4].

Silver futures for December delivery surged 2.7% to $24.70 per ounce. Tuesday’s high for silver was $24.77, while the low was $24.03.

Gold and silver funds rose in Tuesday trading.

Gold and silver mining ETFs fell during the day.

Gold mining shares slumped on Tuesday.

Silver mining shares pulled back during the day.

As of this writing, Christopher Freeburn did not hold a position in any of the aforementioned securities. Adrian Ash of BullionVault[24] contributed to this report.

Endnotes:
  1. [Image]: http://investorplace.com/wp-content/uploads/2011/10/PreciousMetalsRecap.gif
  2. is in sharp contrast to that of Russia: http://investorplace.com/investorpolitics/u-s-russia-meeting-over-syria-put-on-hold/
  3. CME Group: http://www.cmegroup.com
  4. BullionVault: http://www.bullionvault.com
  5. GLD: http://studio-5.financialcontent.com/investplace/quote?Symbol=GLD
  6. IAU: http://studio-5.financialcontent.com/investplace/quote?Symbol=IAU
  7. SLV: http://studio-5.financialcontent.com/investplace/quote?Symbol=SLV
  8. GDX: http://studio-5.financialcontent.com/investplace/quote?Symbol=GDX
  9. GDXJ: http://studio-5.financialcontent.com/investplace/quote?Symbol=GDXJ
  10. SIL: http://studio-5.financialcontent.com/investplace/quote?Symbol=SIL
  11. AEM: http://studio-5.financialcontent.com/investplace/quote?Symbol=AEM
  12. ABX: http://studio-5.financialcontent.com/investplace/quote?Symbol=ABX
  13. EGO: http://studio-5.financialcontent.com/investplace/quote?Symbol=EGO
  14. GG: http://studio-5.financialcontent.com/investplace/quote?Symbol=GG
  15. KGC: http://studio-5.financialcontent.com/investplace/quote?Symbol=KGC
  16. NEM: http://studio-5.financialcontent.com/investplace/quote?Symbol=NEM
  17. NG: http://studio-5.financialcontent.com/investplace/quote?Symbol=NG
  18. AUY: http://studio-5.financialcontent.com/investplace/quote?Symbol=AUY
  19. CDE: http://studio-5.financialcontent.com/investplace/quote?Symbol=CDE
  20. HL: http://studio-5.financialcontent.com/investplace/quote?Symbol=HL
  21. PAAS: http://studio-5.financialcontent.com/investplace/quote?Symbol=PAAS
  22. SLW: http://studio-5.financialcontent.com/investplace/quote?Symbol=SLW
  23. SSRI: http://studio-5.financialcontent.com/investplace/quote?Symbol=SSRI
  24. BullionVault: http://www.bullionvault.com/

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