Gold and silver have started the day on Tuesday up a bit as outside markets are in positions favorable for gold and silver. Today is the first real day of trading this week as American markets were closed on Monday in order to recognize and celebrate the Labor Day holiday. Because this holiday represents the unofficial end of summer, investors are gearing up for what is beginning to look like a fairly hectic next few weeks.
This week alone has a large number of news stories, most of which will have a direct affect on the precious metals market. While gold and silver managed to make large gains in the early parts of last week, they have since given back almost all of those gains and will start this week in more or less the same position which they ended last week.
Tensions High in Syria…Still
This time last week you would not have been thinking too irrationally if you were under the impression that the United States was going to levy military strikes against the Syrian regime. Despite a civil war having been going on in Syria for more than the past two years, recent allegations of chemical weapons use by the government against its own citizens have caused Western nations to pay more attention to the ongoing events in the Syrian civil war. In fact, it is because of this recent allegation of chemical weapons use that has caused nations like the US and UK to consider going to war with Syria. Despite the fact that going to war with Syria could have adverse consequences for both involved parties and the rest of the war, president Obama and his allies seem dead-set on punishing the Syrian government in some way or another.
This time last week it was presupposed that the US and its allies would simply wage a war on Syria in the next few days. As the week wore on, however, we realized that such was not the case because by Thursday we had heard that the UK Parliament rejected a bill that would have seen the United Kingdom enter into warfare with Syria. At almost the same time, president Obama announced that instead of simply revving up and attacking Syria, he would seek Congressional approval before acting.
Despite almost 100% of American citizens absolutely abhorring the thought of another war in the Middle East, Obama and his advisers are presenting the situation in a way where it seems that the US has no choice but to attack Syria. If an attack does come to fruition, investors can expect spot values of gold and silver to soar seeing as almost any time a major military conflict occurs, such is the case. Keep your eyes and ears fixated on all major news outlets because developments can happen at any time.