With all the turmoil going on in the world, gold started the Asian trading up nicely, but by the time Obama spoke and calmed the markets about sending in troops on the ground in Syria, after being asked 4 times the same question on his foreign policy decisions in Turkey at the G20 meeting, he was adamant not to do it and gold fell the rest of the day.
The stock market took it as good news and despite a shaky start, ended up nicely.
All is not well in the world though and I think we’ll see that in the coming months. I don’t know what can stop the issues with ISIS except more bloodshed for many more on both sides. With the refugee situation causing more concern at many borders, including Poland who decided not to accept any refugees, it’s a desperate time for many who are involved.
With France now bombing targets in Syria, you’ll see more and more civilians injured or killed and the results of this action will unfold live as we witness probably more retaliations from relatives or others who have a radical agenda. To reframe their thinking won’t be easy and it will take the killing of many more innocents to destroy their plans unfortunately.
If things do get worse I wouldn’t really want to be long any foreign stock markets and I think there could be some carryover into the U.S. markets. How gold will react is still to be seen but today’s fallback because of the Obama calm instilled shows some real weakness. But it is still managing to hold above that $1,080 resistance.
Doug Eberhardt is a 28 year financial services veteran and precious metals broker selling gold and silver at 1% over wholesale cost. Doug has written a book to help investors understand how gold and silver fit into a diversified portfolio, how to buy gold and silver, and what metals to buy. The book; “Buy Gold and Silver Safely” is available by clicking here Contact phone number for Buy Gold and Silver Safely is 888-604-6534
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