Trump Missile Threat Pushes Gold Prices To Two-Week High
(Kitco News)- Gold prices are once again testing the top end of their recentrange as escalating geopolitical tensions grip financial global markets,according to analysts.
Gold is solidly higher Wednesday morning as markets digest the mostrecent comments from U.S. President Donald Trump, who in a Twitter comment warnedof imminent military action in Syria. June gold futures last traded at $1,356.60an ounce, just off a two-week high and up 0.80% on the day.
Russia vows to shoot down any and all missiles fired at Syria. Get ready Russia, because they will be coming, nice and new and "smart!" You shouldn't be partners with a Gas Killing Animal who kills his people and enjoys it!
— Donald J. Trump (@realDonaldTrump) April 11, 2018“If the situation inthe Middle East further deteriorates, gold is likely to remain in strongdemand,” said commodity analysts at Commerzbank.
George Gero, managing director with RBC Wealth Managementsaid that he could also see gold prices moving higher in the near-term as theyellow metal is a “political and economicbarometer.”
Bill Baruch, presidentof Blue Line futures, described the geopolitical tension as a wild card for thegold market as prices remain in a well-established trading range.
He added that goldneeds to get above $1,370 an ounce if it is going to break out of its currentrange.
Jim Wyckoff, seniortechnical analyst at Kitco.com, said that ultimate resistance comes in at theJanuary high of $1,375 and a move above that level is needed to trigger abreakout.
Along with higher gold prices, the risk-off sentiment can also be seen in equity markets. Colin Cieszynski,chief market strategist at SIA Wealth Management, said that equity futues are down nearly 1% across the board ahead of the North American open.
Trump’s escalatingrhetoric on Syria and President Bashar Assad came afterreports of a poison gas assault on the rebel-held town of Douma duringthe weekend. The World Health Organization said on Wednesday that 43 people haddied in the attack. The gas attack came nearly one year after the U.S. launchedmissiles at a Syrian airport in response to a previous gas attack.
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