Gold and silver have been gaining value this week, and despite things slowing down a bit on Wednesday, this week is looking like its gonna be another positive one for precious metals. There is a high probability that we will see an increase in violence in the Middle East, a region that clearly needs anything besides an increase in violence.
We have been continuing to monitor the looming currency crisis in Asia and though things have slowed down, the Indian Rupee and many other currencies are at risk of depreciating.
Violence in Syria to Possibly Escalate
Earlier this year, it was brought to the attention of the world that the Syrian regime was accused of using chemical weapons against its own citizens. While this news did shock the world, no country or group took any action against Syria apart from condemning their actions publicly.
Recently there has been some talk about the US armed forces taking action in Syria in response to what they view as an injustice of a government against its people. Though the Syrian civil war has been going on for more than two years now, it is a more recent attack that has caused the American government to flirt with the idea of using military force against the Syrian government.
Though it may seem like this news has little to do with precious metals, especially seeing as the Middle East is constantly the victim of ongoing violence, it has caused the world marketplace to look for more safe assets to invest in. Because of this, stock markets in both the US and Europe have fallen victim to heavy selling pressure while crude oil prices have shot up.
Crude oil’s spike in price makes sense due to a fear that shipments may be disrupted should more violence break out in Syria. Another fear stemming from the possible US invasion of Syria is that no one is sure of how the Syrian government will respond to an American attack. Some people think that Syria will lash out on Israel as a result, while others feel like Iran may step in and defend Syria. Regardless of what many people think or believe will happen as a result of a US invasion of Syria, none of the proposed scenarios seem to have positive results.
While no one wishes more violence upon the war-ravaged Middle East, the possibility of US intervention in Syria has really caused safe-haven demand for gold and silver to spike. Investors will be paying close attention to news outlets as they will have up to the minute reports on everything going on in Syria.