Gold has once again shown its preference as a safe haven after Comments earlier today by US President Donald Trump that a military strike in Syria could come at any time.
The US President has vowed to hit Syria with a round of missiles for the Chemical weapons attack it made on its own people, which killed at least 40 people including children.
The confrontation has been made worse after Russia threatened to shoot down any missiles that the US fires as well as attack the bases from where the missiles were launched. This many say could lead to an all-out war between the cold war foes and gold would benefit immensely from such a situation.
“Both yellow and ‘black’ golds [oil] are currently finding support from heightened fear among investors that the U.S. and its allies may soon launch a military strike against Syria,” said Fawad Razaqzada, technical analyst with Forex.com.
Gold has been unable to significantly break through the $1,350 mark for the last year as each time it has tried, there has been strong resistance but this may be the atalyst for a clean break to send the price much higher
“Gold looks like it is about to finally break out after spending months in consolidation. A close above the bearish trend line at $1350/55 area could be the trigger,” Mr Razaqzada said.
Oil also hit it’s highest level in 3 years as the possibility of war in the Mediterranean see threatens to severely disrupt supplies from the region.
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