Though gold and silver have hit a bit of a speed bump on Wednesday, this week has thus far been marked by substantial gains posted by precious metals. There is a growing potential for an increase in violence in the Middle East, specifically Syria, and this news has caused the marketplace to take more caution with their actions.
Yesterday, it was reported that German Business Confidence grew for the fourth consecutive month as the European Economy is looking more and more like it has recovered from the economic recession we saw hit most world economies back in 2008.
The US Prepares to Take Action in Syria
Earlier this year, a story surfaced accusing the Syrian government of using chemical weapons against its own citizens. This story was brought to the attention of people and governments all over the world though no action was taken by anyone.
Now, it seems as though the United States is set to take military action in Syria, some feel in as little as a few days. While many American citizens abhor the thought of wasting more money on a war, it is looking more and more like war is on the horizon. These events have scared most investors and have not only caused a spike in crude oil prices but also put immense selling pressure on stocks around the world. Not only that, but safe-haven demand for gold and silver has picked up considerably in the wake of both the Asian currency crisis and the potential increase in violence that may break out sometime in the near future.
This violence is really serious because it could evolve into a much larger situation than it looks like on the surface. There is no saying how Syria, if attacked by the US, will respond. Many think that such drastic actions being taken by the US will translate into even more violence in a part of the world that seems to know nothing other than turmoil and strife.
Keep your eyes fixated on the major news outlets as they will likely be keeping a minute by minute ticker of everything and anything going on between the US and Syria. In addition to that, the Indian Rupee has continued its depreciation and is something every investor should be aware of.