Closing Gold & Silver Market Report – 8/27/2013
POSSIBLE SYRIAN INCURSION CAUSES MARKET TURBULENCE
Gold is set to end Tuesday higher as investors flocked to the yellow metal’s safe haven appeal on fears of U.S. military intervention in Syria. According to Comex charting data, today’s 2 percent surge formally shifted Gold back into a bullish market. “Gold will be a beneficiary of any military action in Syria,” said Paul Herber, portfolio manager of the Forward Commodity Long/Short Strategy Fund. He added, “Investors are selling equities and moving into safer assets ... of which Gold is one.” APMEX chief executive officer, Michael Haynes, noted the “rhetoric around the increase in the debt ceiling and the implied threat that this debate will erupt into” as another factor pushing Gold into bull territory. “The Gold markets appear to be looking for reasons to go higher and we have these ‘ignition points’ at the moment,” Haynes continued. “As we move past the Syrian threat and into the U.S. debt/budget discussion in September, which has longer term impact, the call on the bull market will be more evident.”
U.S. stocks experienced their largest single-session slide since June as the possible Western military foray into Syria weighed heavily on investor sentiment. “This (stocks) move is as much about the potential spillover effect in the region as it is the potential for a U.S. strike,” BNY Mellon Wealth Management chief investment officer Leo Grohowski said. Markets have already been acting erratically ahead of anxiety surrounding the expected taper of monetary stimulus measures that have helped lift equities to record highs. Today’s dip has analysts and economists forecasting potentially weak short-term momentum as the S&P 500 fell below its 100-day moving average for the first time since late June.
At 5:07 p.m. (ET), the APMEX Precious Metals spot prices were:
- Gold, $1,417.40, Up $22.30.
- Silver, $24.56, Up $0.49.
- Platinum, $1,527.00, Down $18.50.
- Palladium, $744.70, Down $2.90.
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