In the last week or so there has been a changing sentiment towards
what is driving gold, a large part of the focus is now directed towards
Syria and less so on the FOMC’s tapering. Depending on who you believe
Syria may determine the outlook for the gold and silver price.
But how much of an impact will a war with Syria really have on the gold price?
Other commodities, such as oil are also impacted by murmurings of war but even they too are looking at factors beyond Syria as price drivers.
Many analysts believe the gold price will climb as investors turn to it as a safe-haven in times of geo-political crisis. This may be the case but whether this will matter once foreign military action begins, or even if it never begins, is an important question.
On the face of it, it may seem obvious that the gold price will climb as action surrounding Syria holds the world’s attention. After all, the price of gold has climbed to a three-month high reportedly on the back of events in the Middle East and the war rooms of the West.
Other commodities, such as oil are also impacted by murmurings of war but even they too are looking at factors beyond Syria as price drivers.
Many analysts believe the gold price will climb as investors turn to it as a safe-haven in times of geo-political crisis. This may be the case but whether this will matter once foreign military action begins, or even if it never begins, is an important question.
On the face of it, it may seem obvious that the gold price will climb as action surrounding Syria holds the world’s attention. After all, the price of gold has climbed to a three-month high reportedly on the back of events in the Middle East and the war rooms of the West.
