Gold and silver were up by pretty large margins in the early parts of Tuesday thanks, in large part, to a potential increase in violence in the Middle East. After a quiet Monday which saw people in the UK take the work day off in observance of a public holiday, things really got off to a rocking start on Tuesday.
Apart from a potential increase in violence in the Middle East, investors also have some positive economic reports out of Europe to hang their hats on. All in all, precious metals being seen as safe-haven assets is becoming increasingly common as demand for both gold and silver has been shooting up rapidly over the course of the past few weeks or so.
Syria in the Spotlight
Earlier this year, a report surfaced which claimed that the Syrian government had used chemical weapons against its own citizens. Many prominent countries around the world took notice, but the United States may be the first such nation to actually take action in Syria in regard to the use of chemical weapons.
Though it is not for certain, most betting people would place their money on the fact that within a few days the US will have at least some military involvement in Syria. Such actions will undoubtedly work to increase tensions in the region and likely violence as well. While this is not good news for the prospect of peace in the Middle East, it is beneficial news for the spot values of gold and silver. Seeing as so much of the world is currently facing problems, such as the violence in the Middle East and the currency problems in Asia, investors are looking at gold and silver more and more as safe-haven assets.
The currency crisis which struck Asia about two weeks ago has calmed down a bit, though the latest developments have seen the Indian Rupee hit new record lows when compared to the USD.
Some Light European Economic News
Over the course of the past few weeks, we have seen nothing but positive economic news out of Europe, and this week is no different. This time around, we have an increase in German Business Confidence, the largest such increase in over a year.
This news adds strength to the growing belief that the overall EU economy is beginning to show solid signs of improvement. More and more people are convinced that the EU has finally emerged out of the darkness that was economic recession. Now it comes time to see if the European economy will continue to improve or if it will drop right back down to a less than stellar position.