Gold Jumps $27 as Syria and Debt Ceiling Drama Heats Up
On Tuesday, gold (NYSEARCA:GLD) futures for December — the most active contract — jumped $27.10 to close at $1,420.20 per ounce, while silver (NYSEARCA:SLV) futures surged 65 cents to finish at $24.70. It was gold’s best close in more than three months.
Both precious metals continued their impressive rebound as stocks and the U.S. dollar index declined. Tensions are once again heating up with the Middle East, and the U.S. could reportedly take action against Syria by Thursday.
NBC News reports: “The disclosure added to a growing drumbeat around the world for military action against Syria, believed to have used chemical weapons in recent days against scores of civilians and rebels who have been fighting the government for two years. In three days of strikes, the Pentagon could assess the effectiveness of the first wave and target what was missed in further rounds, the officials said.”
Adding to the market volatility, Treasury Secretary Jack Lew urged Congress to raise the debt ceiling and claimed that President Barack Obama will not negotiate over the issue.
By the end of the trading day Tuesday, shares of the SPDR Gold Trust (NYSEARCA:GLD) increased almost 1 percent, while the iShares Silver Trust (NYSEARCA:SLV) gained 0.6 percent. However, miners declined across the board. Shares of Yamana Gold (NYSE:AUY) and Barrick Gold (NYSE:ABX) dropped 4.6 percent and 3.5 percent, respectively. First Majestic Silver (NYSE:AG) shares fell 5.8 percent.
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Disclosure: Long EXK, AG, HL, PHYS