Today’s AM fix was USD 1,425.50, EUR 1,066.03 and GBP 919.91 per ounce. Yesterday’s AM fix was USD 1,411.00, EUR 1,057.80 and GBP 909.38 per ounce.
Gold rose $13.10 or 0.95% yesterday, closing at $1,415.50/oz. Silver rose another $0.16 or 0.66%, closing at $24.46. Platinum fell $20.25/oz to $1,521.75 and palladium edged down 0.1% to $743.22/oz.
Gold and silver are higher in all currencies today. The rupee’s sharp fall continues. It fell the most in 20 years overnight and gold reached new record highs in the rupee.
Safe haven demand has returned due to concerns that military action against Syria could lead to a war in the already very unstable Middle East, which could result in much higher oil prices and impact the already fragile global economy.
Gold in USD - 5 Years (Bloomberg)
Geopolitical risk, which has been vastly underestimated for months, has returned with a vengeance. Markets have seen increased volatility and risk aversion as the U.S., the U.K. and France press ahead with plans for a 48 hour cruise missile attack on selected targets in Syria this week.
Gold and silver have risen 4% and 7.5% in the five trading days since the drums of war began.
Oil prices rose sharply yesterday with NYMEX crude rising 2.9% and Brent crude rising 3.3%. This was the sharpest daily rise this year and led to a six-month high of $114.35 a barrel. NYMEX crude has risen 6% since last Thursday.
Share prices tumbled globally in volatile trading on Tuesday as momentum built for military action. Stocks in Asia also saw some losses. Falls in Europe have continued again this morning.
The FTSE All-world share index dropped 1.4% to close at its lowest since early July. The S&P 500 was down 1.42% and the Nasdaq by 2%.
It is noteworthy that one of the largest moves in stock, bond, commodity and all markets today is the sharp fall in British gilts, which has seen 10 year yields rise sharply from 2.59% to 2.8%, the highest level since August 2011.