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Gold Hits Weekly High as Trump Indicates Syria Missile Strikes Coming

Business Live  ( Original )
APR 11, 2018

Another day, another fresh reminder that in the Trump administration, words mean nothing and yesterday’s fiery declaration it today’s birdcage lining.

Less than two weeks after indicating the US would leave Syria, “very soon,” the world is preparing for US airstrikes on Syria that may begin within 72 hours. Missiles. Missiles that Russia now says they will shoot down.

Chaos. Utter and total unpredictability. The value of gold’s flight-to-safety trade value increases by the minute.

London — Gold rose for a fourth day on Wednesday as the concern over escalating tension in Syria, US sanctions on Russia and the US-China trade stand-off weighed on stock markets and helped knock the dollar index to a two-week low.

The metal reached its strongest in a week as appetite for nominally lower-risk assets sharpened. Palladium, which has also benefited from the fear that sanctions on Russia could hurt supply, rose further after climbing nearly 6% in the last two days.

Spot gold was up 0.5% at $1,345.80/oz by 9.57am GMT, while US gold futures were 0.2% higher at $1,349.10/oz.

"We’ve seen fears of a trade war and now more recently the Russian sanctions," Capital Economics analyst Simona Gambarini said. "Uncertainty, volatility and geopolitical risk have been rising steadily since the start of the year." That has sparked good demand for gold through products such as bullion-backed exchange-traded funds, she said.

"Gold is benefiting from the risk-off sentiment, and because people are trying to hedge against worst-case scenarios." European stocks fell after two days of gains as tension over Syria and US sanctions drove Russia’s rouble to a two-year low, while concern about the prospect of a trade war boosted traditional safety plays at the expense of the dollar.

ORIGINAL SOURCE: Gold at highest in a week on global political concerns by Jan Harvey at Business Live on 4/11/18