Contact us
CALL US NOW 1-888-GOLD-160
(1-888-465-3160)

Post Syrian Attack: Only Certainty is Uncertainty

  by    0   1

The price of gold surged after the US launched more than 50 cruise missiles at an airbase in Syria. The military action was in response to a deadly chemical weapons attack the US blames on the Syrian government.

Trump’s decision to launch an attack directly at the Assad government in Syria marks a dramatic reversal in the president’s positions. Just weeks ago Secretary of State Rex Tillerson said the “status of President Assad will be decided by the Syrian people.” As The Journal put it, this tacitly aligned the US with Russia’s plan to allow the Syrian leader to seek re-election.

Gold rose over 1% early Friday, edging close to a 5-month high. According to CNBC, spot gold rose 1.3% to $1,267.43 per ounce by 0225 GMT, after touching a high of $1,269.28. That marks the highest price since Nov. 10. Gold is on track for its fourth straight week of gains.

“Clearly this raises the stakes and we expect to see gold prices continuing to push higher in the short-term, at least until there is some clarity around whether this is a one-off or develops into something more,” ANZ analyst Daniel Hynes told CNBC.

Silver also got a boost, rising over 1% to $18.43 an ounce, after touching a more than one-month peak of $18.47.

The surge in the price of gold and silver comes as no surprise. Safe haven-buying is a typical response during times uncertainty and upheaval. Trump’s military action and talk of regime change in Syria could have much deeper ramifications that ripple beyond the region. Russia supports the Assad government and has already condemned the US attack. And of course, the Middle East isn’t the only unstable region in the world, as Bloomberg points out.

“Bullion acts as a haven during times of geopolitical conflict. Prices have also risen this week amid signs of escalating tension on the Korean peninsula, with North Korea conducting a ballistic missile test in the run-up to a summit between Trump and Chinese President Xi Jinping.”

While the media gets caught up in the events of the day, and their immediate impact on markets, it’s important to step back and look at things from a longer-term perspective. Nobody can predict the flashpoints that will spike precious metal prices in the short-term. Two weeks ago, nobody imagined the Trump administration would lob cruise missiles at Syrian government targets. In fact, it appeared there might be progress and some movement toward some stability in the war-torn country.

Things can change at any moment. That’s always been true.

But recent events do point to an underlying reality. The current US administration has a propensity to make brash decisions and turn policy on a dime. Trump has shown little political discipline since taking office. His handling of the healthcare debacle has created doubts about the president’s ability to navigate the complex political world inside the Beltway. Making deals on Capitol Hill isn’t the same as making deals in a Trump Towers penthouse.

While we can’t predict what specific events will unfold in the coming months and years, one thing seems certain – uncertainty.

It’s not just the question marks surrounding the Trump administration. As we reported earlier this week, elections in Turkey have people in that country on edge – and buying gold. The future of the EU remains murky. North Korea continues to saber-rattle. And of course, we can’t forget the shaky US economy. The Federal Reserve has backed itself into a corner trying to figure out how to “normalize” monetary policy without popping one of the many asset bubbles it’s inflated over the last decade.

In times of uncertainty, gold is the safe place to go. We see evidence of this with virtually every unsettling news event. But seeking a safe haven after the fact doesn’t really make a whole lot of sense. You don’t go into the cellar after the tornado. You need to establish your safe-haven before calamity strikes. That’s some food for thought in these uncertain times.

 

TaxFreeGold.Banner.1000x285


Related Posts

Some Key Reasons Gold Should Shine in 2018

gold coins and bullions laying on a newspaperThe last few weeks have been tough on gold. If you have a short-term mentality, you might even think the gold market has gone bearish. But as World Gold Council chief market strategist John Reade pointed out in a piece he wrote for the December issue of WGC Gold Investor, 2017 has been good for […]

READ MORE →

FOMC Meeting: Yellen Follows Her Script

The December Federal Open Market Committee meeting went pretty much according to scrip. Analysts widely expected the Fed to raise rates by .25. It did. Analysts also expected the Fed to signal three more hikes in 2018. It did that too. Gold went up, as we said it probably would, hitting a one-week high in […]

READ MORE →

The US Government Is Spending Money Like a Drunken Sailor

The US federal government is spending money like a drunken sailor. And that’s probably unfair to drunken sailors. In November alone, the US government reported a $139 billion deficit. Related

READ MORE →

Crypto vs. Gold: Gold Has Value Unto Itself

gold barsBitcoin mania is in full force. When I get to my desk in the morning, the first thing I do is check the latest gold news. But lately, when I google the word “gold,” I mostly get Bitcoin news. In his most recent podcast, Peter Schiff even suggested CNBC should rename its network the “Crypto News […]

READ MORE →

The Fed’s Magic Trick That’s Picking Your Pocket

Every year, the Federal Reserve robs you of a little bit of your wealth. And it does so by design. Writing for the Sovereign Man, Jeff Thomas called it a “magic trick.” But it’s not magic in a mystical way. It’s magic in the show business sense of the word.  It’s an illusion, facilitated by distraction that fools the audience. […]

READ MORE →

Comments are closed.

Free Newsletter & Notification of Special Deals
RSS Feed
LINKEDIN
YouTube Channel
YouTube Channel
Google+
Google+
https://schiffgold.com/key-gold-news/post-syrian-attack-certainty-uncertainty
Call Now