Gold and silver opened Thursday down a bit as worries regarding US military intervention in Syria have began to wind down. Though this has been the marquis news story of the week, tensions seem to be easing up in the latter part of the week.
Stocks which started the week losing significant value have begun to bounce back while crude oil prices, of which rose quite a bit this week, have also begun to balance out again. We will continue to monitor the situation in Syria as it stands the possibility to escalate at any given time in the near future. We have already heard some positive economic news out of Europe this week, but this news was short-lived as investor attention was quickly fixated elsewhere.
Looming Syrian Tensions
For Syria, a civil war has been raging for the past two years or so. While the world has chosen to ignore most of this civil war’s developments, more recent happenings have caught the attention of leaders of all nations around the world. A couple of months ago it was reported that the Syrian government had been using chemical weapons against its own citizens. This is shocking, but in the grand scheme of the Syrian civil war so many innocent people have been murdered that it really makes one wonder why nations like the US are just getting concerned now.
Regardless of why,the US and its allies were reported as preparing to strike Syria sometime in the near future. Despite citizens of the world calling for decreased military action in the Middle East, President Obama and a few others believe that military intervention is the only way to put a halt to the senseless killing of civilians. On Monday, the mood was one that insinuated the US would strike within a day or two, if not even sooner. Now that its Thursday, the sentiment has changed as the whole scenario seems to have calmed down a bit.
President Obama is unsure of what action to take, and the US’ allies are too. When it was thought that the US would intervene in Syria initially,safe-haven demand for gold and silver picked up dramatically, but now the situation has calmed down and because of that gold and silver are seeing corrective bounces today. All in all it is still looking like the week will be one of gains for both gold and silver, though only time will tell if this is actually the case.