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Gold Prices Gain Amid Rising Tensions over Syria; Silver Prices also Rise

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Gold prices rallied during Asian trading hours on Tuesday as heightening geo-political tensions in the middle-east bolstered the metal’s safe-haven appeal. Silver prices have also risen in early trading on Tuesday.

In addition, rising speculation that the Federal Reserve might wait a bit longer before it starts to taper its bond purchase program also helped extending gains. Two back-to-back ( July’s existing home sales and durable goods orders)  dismal U.S. economic indicators have sparked off debate whether the Fed will be prepared to pullback its economic stimulating measures (bond purchases).

At last check, gold futures for December delivery jumped 1.30% to $1,411.20 an ounce while spot gold gained 0.46% to $1,410.85 an ounce.

Global equities were hammered on Monday while gold shone and highly liquid currencies such as yen and the U.S. dollar rose after United States on Monday signaled a possible military intervention in Syria. Thousands of civilians were killed in Syria last week in what apparently was a chemical gas attack ordered by President Bashar-al- Assad.

Commenting over gold’s possible price course in coming sessions, Nic Brown, an analyst at Natixis said, “Geopolitical tensions in Syria are one of the factors which will be supporting gold prices in coming sessions,” according to Reuters.

“And you also have the latest data out of the United States over the past couple of sessions that was relatively weak and raised the question mark over the timing of the U.S. Fed tapering,” added Brown.

In some other precious metal markets, spot platinum edged up 0.25% to $1,543.74 an ounce while spot palladium added 0.13% to $744.97 an ounce.

Silver futures climbed 1.06% to $24.32 an ounce.

In pre-market trading, the iShares Silver Trust (ETF) (NYSE: SLV) was up 0.64%, and the ProShares Ultra Silver (ETF) (NYSE: AGQ) was up 1.09%.

 








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edliston
Post Written By: Ed Liston

Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing in his yacht.

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Ed Liston

Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing.

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