Gold Surges on Fear of Syria Conflict
NEW YORK (aUG 27) Gold prices were surging Tuesday as the possibility for military action in Syria escalated.
Gold for December delivery at the COMEX division of the New York Mercantile Exchange was popping $25.10 to $1,418.20 an ounce. The gold price traded as high as $1,424 and as low as $1,395.20 an ounce, while the spot price was gaining to $1,418.84.
U.S. Secretary of State John Kerry said Monday that Syria used chemical weapons against its civilians, but wouldn't say if the Obama administration would take military action.
"Gold is nothing more than a liquid currency for the world," Dennis Gartman, editor of The Gartman Letter, wrote on Tuesday. He noted that gold's popularity seems to be rising "in light of the current geopolitical risks that are raising its stature as the first among equals."
Reports emerged Monday afternoon that British warplanes were arriving at one of the country's airbases in Cyprus, which would be a launching point for forces into Syria should the U.K. decide to take action. Whether the U.S. will take action remains uncertain.
Investors often see gold as a safe-haven investment during periods of political or economic crisis.
Silver prices for September delivery were adding 59 cents to $24.60 an ounce, while the U.S. dollar index was climbing 0.09% to $81.46. Silver, surging more than 2.5% on Tuesday, is up more than 25% in August.
In central bank gold holdings for July, Turkey and Russia were notable gainers of reserves, while Mexico diminished its gold position, according to data released by the International Monetary Fund.
Russia added 6.3 metric tons to 1,002.8 tons and Turkey added 22.5 tons to 464 tons. Mexico dropped to 123.8 tons.
Gold mining stocks were mixed on Tuesday as a drop in major U.S. stock markets and a surge in gold futures contracts pulled companies in the sector in various directions. Shares of Agnico-Eagle Mines were shedding 1.6%, while shares of Gold Fields were lifting 3%.
Barrick Gold was among the most traded gold miners on Tuesday as shares slipped 0.71%.
Gold ETF SPDR Gold Trust , the heaviest traded of all exchange traded funds, gained 1.2% to $137 a share, while shares of iShares Gold Trust added 1.2% to $13.78
