Gold Spikes as U.S. Bombs Syria

Gold jumps 15 Dollars to a high of 1264 as the U.S. announces a major cruise missile strike on Syria.

Gold has jumped from 1250 to a high of 1264 as the United States announces a major surprise attack on Syria in retaliation for the chemical attacks on its citizens earlier this week.

MORE THAN 50 MISSILES FIRED FROM U.S. NAVY DESTROYERS IN THE EASTERN MEDITERRANEAN, STRIKING SEVERAL TARGETS ON BASE – SECOND U.S. OFFICIAL – RTRS

The timing is somewhat shocking as the Chinese President Xi is on a state visit to the United States at the moment. My initial thoughts are the new president is sending a big message to the Chinese about their willingness to act on North Korea as well with this strike.

Geopolitics aside, safe-haven risk aversion should be the theme of the day now with Gold and Silver the major beneficiaries. Gold has broken the 200-day moving average intra-day and has tested its upper resistance at 1264, the February 28th high. A daily close above these levels can open a technical move to 1300 with support now at the 1250 level.

Expect Gold to be bid on any dips now and for crude oil to move higher as well. We expect stocks and bonds to also move and will comment on these in due course.

President Trump is due to address the nation shortly and the street will also look to see the reaction of the Chinese as well.

 

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

Jeffrey Halley

Jeffrey Halley

Senior Currency Analyst
Based in Singapore, Jeffrey has over 25 years experience in the financial markets, having traded currencies, options, precious metals and futures. Jeffrey started his career at Barclays Bank in New Zealand. However he has spent most of it in London and Asia.Jeffrey focuses on the Asia time zone across asset classes. A regular commentator on business news TV and Radio, he is originally from New Zealand and holds an MBA from Cass Business School, London.
Jeffrey Halley

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