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, 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. 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.
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.
- The SPDR Gold Trust (GLD) added 0.9%.
- The iShares Gold Trust (IAU) gained 1%.
- The iShares Silver Trust (SLV) inched up 0.6%.
Gold and silver mining ETFs fell during the day.
- The Market Vectors Gold Miners ETF (GDX) dropped 4.2%.
- The Market Vectors Junior Gold Miners ETF (GDXJ) tumbled 5.2%.
- The Global X Silver Miners ETF (SIL) slid 3.7%.
Gold mining shares slumped on Tuesday.
- Agnico-Eagle Mines (AEM) fell 5.2%.
- Barrick Gold (ABX) sank 3.5%.
- Eldorado Gold (EGO) decreased 4.6%.
- Goldcorp (GG) moved down 4.3%.
- Kinross Gold (KGC) slipped 4.4%.
- Newmont Mining (NEM) declined 3.5%.
- NovaGold Resources (NG) slid 3.4%.
- Yamana Gold (AUY) retreated 4.5%.
Silver mining shares pulled back during the day.
- Coeur d’Alene Mines (CDE) tumbled 6%.
- Hecla Mining (HL) dropped 5%.
- Pan American Silver (PAAS) fell 4.9%.
- Silver Wheaton (SLW) sank 5%.
- Silver Standard Resources (SSRI) declined 6.5%.
As of this writing, Christopher Freeburn did not hold a position in any of the aforementioned securities. Adrian Ash of BullionVault contributed to this report.