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 Market Analyst - Asia Pacific
With more than 30 years of FX experience – from spot/margin trading and NDFs through to currency options and futures – Jeffrey Halley is OANDA’s senior market analyst for Asia Pacific, responsible for providing timely and relevant macro analysis covering a wide range of asset classes. He has previously worked with leading institutions such as Saxo Capital Markets, DynexCorp Currency Portfolio Management, IG, IFX, Fimat Internationale Banque, HSBC and Barclays. A highly sought-after analyst, Jeffrey has appeared on a wide range of global news channels including Bloomberg, BBC, Reuters, CNBC, MSN, Sky TV, Channel News Asia and the New York Times. He was born in New Zealand and holds an MBA from the Cass Business School.
Jeffrey Halley
Jeffrey Halley

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