Syria Pushes Gold to 3.5-Month High

Growing concerns over whether the Unites States will take military action against Syria created safe-haven demand for gold, pushing prices for the precious metal to a three-and-a-half-month high, Aug. 28.

Gold prices reached $1,433.31 an ounce today – the highest level seen since May 14 – Reuters reported. Later, spot gold was at $1,421.44 an ounce, an increase of $5.69 from the previous session. U.S. gold futures for December delivery also rose $1.60 to $1,421.30 an ounce.

“There is a degree of safe-haven demand from in and around the Middle East, and with the move up in price in the last couple of weeks, you’ve had something of the order of 6 million ounces of short-covering going through on the Comex futures and options market,” Credit Suisse analyst Tom Kendall told the source. “That’s been playing into it as well.”