As tensions over Syria increased, so did the price of gold. The price of the precious metal is close to 20% higher from its low of 34 months on June 27. As of 11:00 am ET on Wednesday gold was selling at $1,433, an increase of 1.3%.
The rise in the price of the precious metal can be attributed to the widespread speculation about the possible attack by Western forces against the country of Syria, causing investors to find a safe haven for their assets. Silver was also up hitting a high of four months on Wednesday morning.
If Gold can reach $1,440 and close there it would be at its highest price since mid May and 20% higher than is near three year low, which would make it a bull market.
Silver climbed on the day by 2.6% and is now at $25.10 an ounce, which is its highest price since mid April.
Any military response would focus on the weapons capabilities of Syria and would not be aimed at the deposing of current President Bashar al-Assad, insisted officials from the UK and U.S.
David Cameron the Prime Minister of the UK said that even though no decision has been taken on what course of action to proceed with, it would be proportionate and legal.
Increasing demand for bars, coins and jewelry in Asia has helped prices of gold rally over 19% since last June.
Bullion is set to have its first annual decrease in more than 13 years after many investors started losing faith in the precious metal, which spurred the mining industry to have over $26 billion in write downs and huge losses for hedge fund manager billionaire John Paulson.
Michael Turner
