Mid-Day Gold & Silver Market Report – 8/28/2013
SYRIAN CONFLICT COULD DELAY QE, BOOST GOLD
The Gold price is trading flat following yesterday’s significant boost spurred by safe haven demand on speculation that a U.S.-led attack on Syria could launch within a couple of days. With turmoil erupting between Western nations and Syria, many analysts believe the U.S. Federal Reserve may have no choice but to continue the current level of quantitative easing (QE), though the possibility of tapering has already caused fairly major setbacks in U.S. equities markets. The threat of an escalated conflict, should Russia insist on backing Syria, along with the potential for soaring oil prices following an uproar in the Middle East are factors that could continue to drive investors to Gold as an asylum.
With growing uncertainty surrounding geopolitical tension and the future of QE, Gold is now teetering on entering a bull market. “We are seeing safe haven buying across the board,” said Bernard Sin, head of currency and metal trading at bullion refiner MKS (Switzerland) SA in Geneva. “Geopolitical uncertainty triggered this buying interest.” U.S. energy stocks have helped boost equities markets today as rising oil prices react to a potential maneuver against Syria.
At 1 p.m. (ET), the APMEX Precious Metals spot prices were:
- Gold, $1,420.80, Down $1.40.
- Silver, $24.44, Down $0.28.
- Platinum, $1,539.90, Up $6.80.
- Palladium, $747.90, Down $2.80.