Gold and silver started the week continuing their extended upswing, though as the week has worn on both metals have lost a good bit of the value they gained over the past few weeks. The main piece of news on every investor’s mind this week was the possible increase of violence in the Middle East due to Western military intervention in Syria. Also in the news was some more positive economic news out of both Europe and the United States.
Monday is expected to be a quiet day of trading due to Americans observing the Labor Day holiday. This holiday unofficially ends summer for most, and while things have been subdued over the past few weeks, news stories and economic activity will likely pick up significantly.
Imminent Military Action in Syria
Over the past two or so years, a civil war has been raging in Syria between government forces and rebel forces. During this time little progress has been made by either side, though the destruction that has been witnessed is unparalleled. Not only that, but thousands of innocent civilians have been killed by both rebel and government fighters and even more have been forced out of their homes.
More recently, reports of chemical weapons attacks by the Syrian government on civilians have surfaced. These reports have caught the attention of the UN as well as a number of Western nations who vow to take some sort of action against Assad’s regime. The United States is at the forefront of countries prepping to strike Syria in response to their use of chemical weapons.
On Monday and Tuesday many people were convinced that a US-led strike was going to take place in Syria by the end of the week. This news initially prompted the US Dollar and stocks to fall while gold and silver gained significant amounts of value. As is usually the case, whenever a war is on the horizon, investors abandon currencies and stocks in order to latch on to more safe assets such as precious metals. Initially it was looking like this week was going to be yet another positive one for precious metals spot values, though things began to shift as the second half of the week got underway.
As the days passed it became more and more evident that a military strike may not be as imminent as many people had originally thought. With Russia sending one of its military vessels to the Mediterranean and public curiosity about the matter soaring, president Obama announced that he and his allies are still unsure of what action to take in Syria.
Now the marketplace is playing the waiting game in regards to what will happen in Syria. Because an attack did not happen this week, stock prices rebounded, as did the US Dollar. Gold once again dipped below the $1,400 mark while silver also made large enough losses to fall back below $24.
This market update is provided weekly with analysis. You can always check current market value of silver of silver by watching our on-site charts.