Will US Bombing of Syria Affect Gold Market
By USABR.
Gold futures are up Friday, as the U.S. military attack on Syria shakes international markets. New market volatility is expected on the back of the Syria attack which took place on Thursday evening.
A series of 59 Tomahawk cruise missiles were fired from a U.S. Navy vessel in the Mediterranean, targeted at a Syrian airfield. The missiles were President Trump’s reaction to the egregious chemical attack this week, which killed at least 86 people, 27 of them children. The airfield targeted is thought to be the location from which the government of Syrian President Bashar al-Assad fired the banned chemical weapons.
“Trump’s tough stance will send a strong message to other dictators in Iran and North Korea, but how it escalates from here will be key, and the world stage is watching,” said Jonathan Rose, CEO of Capital Gold Group.
Aboard Air Force One on Wednesday, President Trump addressed the chemical attack to reporters, saying, “I think what happened in Syria is a disgrace to humanity.”
Later on Thursday evening, hedge fund billionaire Stanley Druckenmiller bought back his gold fortunes, after famously selling them all off after President Trump’s election. Precious metals market analysis has found that hedge fund managers aren’t the only ones – recent central bank investment trends have also adjusted accordingly. An OMFIF report has found that since the financial crisis of 2008, central banks in both developed and developing countries’ demand for precious metals has risen significantly, and the attack on Syria is expected to intensify that increase in demand.
“Precious metals always act as a hedge against volatility, and we have a lot of it,” said Mr. Rose. “In today’s volatile markets diversification is an essential part of anyone’s portfolio.”
Past major international conflicts, including the removal of Gaddafi, US military intervention in Iraq, and the September 11 attacks, have all been followed by a sharp incline for precious metals.
