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Gold touched an intraday high of $1.232.20 on Tuesday, before settling back at $1,220.
Gold recovered some of its losses on Tuesday, adding 1.4 percent to reach $1,232.20 an ounce after the US and its coalition partners began airstrikes in Syria that targeted hardline Islamic militants, according to Reuters. The geopolitical tension – which often drives prices of precious metals higher as a safe haven – helped gold rise off the $1,208.36 settled at in the previous session, the lowest since January 2. Unfortunately, the yellow metal has yet to sustain those gains, slipping back to $1,220.87.
US gold futures gained $14.80 to $1,225.50 an ounce.
“The metal seems to have been supported by some safe-haven buying after news emerged that the U.S. has launched airstrikes against the ISIS militants in Syria,” Abhishek Chinchalkar, an analyst at Mumbai-based AnandRathi Commodities Ltd., said in a report cited by Bloomberg. “We do not expect gains in gold to last for long. With broader conditions in the U.S. continuing to improve, we expect the dollar to maintain a firm tone.”
