The mounting debacle regarding military intervention in Syria has caused volatility in the markets for a number of weeks now. In the last month the price of gold and oil have risen by as much as 8% and 6% respectively as Syria discussions have heated up.
Gold has continued to rise as investors seek a safe haven amid the Syrian strike debate. It now stands at $1,391.57 having risen from $1,287.61 thirty days ago. The prospect of military intervention coupled with the likelihood that the Fed will cut monetary stimulus in its upcoming meeting has caused traders to begin to consider gold as a means of wealth protection.
Mr. Obama said he would seek Congressional approval prior to any intervention. The Senate Foreign Relations Committee subsequently voted on Wednesday to authorize President Obama to conduct a military operation in Syria. This was the first test to gauge the Congress’s willingness to advocate a US response to allegations of Chemical weapons use by the Syrian Government. The full Senate will vote early next week to decide on the matter.
The position of the US and UK on military intervention has been unclear over the past week; at one stage an intervention seemed imminent, then the UK voted to reject ‘military action’ and now US intervention looks highly probable. This uncertainty has caused a lot of volatility in the markets. Gold closed today down 1.74% with a late sell-off on the back of positive economic news for the US. None the less, gold’s rise looks set to continue with a positive Labour report due tomorrow and the Fed looking increasingly likely to tapper asset purchasing this month.
Meanwhile oil prices have also swung back and forth as the market tries to weigh up the signals coming from the White House and other world leaders concerning the timetable for possible military intervention against the Bashir al-Asaad regime.
Crude oil prices spiked last week before giving some of those gains back, amid worries that a possible strike on Syria would lead to supply disruptions in the Middle East, which produces about a third of the world’s oil-supply. While Syria is not a major oil producer, fears that any military action could affect the flow of crude through major sea routes in the Persian Gulf are shaking the market.
Crude Oil Brent now stands at $115.10 rising from $108.20 at the start of August.
Gold has continued to rise as investors seek a safe haven amid the Syrian strike debate. It now stands at $1,391.57 having risen from $1,287.61 thirty days ago. The prospect of military intervention coupled with the likelihood that the Fed will cut monetary stimulus in its upcoming meeting has caused traders to begin to consider gold as a means of wealth protection.
Mr. Obama said he would seek Congressional approval prior to any intervention. The Senate Foreign Relations Committee subsequently voted on Wednesday to authorize President Obama to conduct a military operation in Syria. This was the first test to gauge the Congress’s willingness to advocate a US response to allegations of Chemical weapons use by the Syrian Government. The full Senate will vote early next week to decide on the matter.
The position of the US and UK on military intervention has been unclear over the past week; at one stage an intervention seemed imminent, then the UK voted to reject ‘military action’ and now US intervention looks highly probable. This uncertainty has caused a lot of volatility in the markets. Gold closed today down 1.74% with a late sell-off on the back of positive economic news for the US. None the less, gold’s rise looks set to continue with a positive Labour report due tomorrow and the Fed looking increasingly likely to tapper asset purchasing this month.
Meanwhile oil prices have also swung back and forth as the market tries to weigh up the signals coming from the White House and other world leaders concerning the timetable for possible military intervention against the Bashir al-Asaad regime.
Crude oil prices spiked last week before giving some of those gains back, amid worries that a possible strike on Syria would lead to supply disruptions in the Middle East, which produces about a third of the world’s oil-supply. While Syria is not a major oil producer, fears that any military action could affect the flow of crude through major sea routes in the Persian Gulf are shaking the market.
Crude Oil Brent now stands at $115.10 rising from $108.20 at the start of August.