Gold posted its first rise in four sessions after U.S. President Barack Obama prompted Congress to vote to authorize a military strike punishing the Syrian regime’s alleged use of chemical weapons last month.
Increased tensions in the ever-volatile Middle East typically increase gold’s appeal as a safe haven investment. Last week, the metal’s rally stalled after the British pulled out of possible action and the U.S. appeared unlikely to act in the short term.
On Tuesday, key GOP leaders in the House of Representatives signaled that they would vote in favor of authorizing air strikes against Syria, bolstering the likelihood that the U.S. would launch military action sooner rather than later.
Gold futures for December delivery climbed 1.1% to $1,412 per ounce on Tuesday, according to CME Group. Gold traded as high as $1,416.40 and as low as $1,373.60. Gold bullion closed in London at $1,415, according to BullionVault.
Silver futures for December delivery surged 3.9% to $24.43 per ounce. Tuesday’s high for silver was $24.53, while the low was $23.11.
Gold and silver funds gained in Tuesday trading.
- The SPDR Gold Shares (GLD) rose 1.3%.
- The iShares Gold Trust (IAU) also added 1.3%.
- The iShares Silver Trust (SLV) increased 3.5%.
Gold and silver mining ETFs advanced during the day.
- The Market Vectors Gold Miners ETF (GDX) climbed 1%.
- The Market Vectors Junior Gold Miners ETF (GDXJ) grew 1%.
- The Global X Silver Miners ETF (SIL) moved up 1%.
Gold mining shares improved on Tuesday.
- Agnico-Eagle Mines (AEM) gained 0.7%.
- Barrick Gold (ABX) added 1.9%.
- Eldorado Gold (EGO) increased 2.3%.
- Goldcorp (GG) rose 1.2%.
- Kinross Gold (KGC) advanced 1.3%.
- Newmont Mining (NEM) fell 0.2%.
- NovaGold Resources (NG) surged 3.3%.
- Yamana Gold (AUY) moved up 1.1%.
Silver mining shares rose during the day.
- Coeur d’Alene Mines (CDE) edged up 0.4%.
- Hecla Mining (HL) climbed 2.9%.
- Pan American Silver (PAAS) gained 1.9%.
- Silver Wheaton (SLW) moved up 1.5%.
- Silver Standard Resources (SSRI) added 1.4%.
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.