Syria and U.S. Economy Driving Gains in Gold Prices
Gold prices have climbed as political instability has continued apace and U.S. job growth numbers in March were weaker than expected.
The U.S. registered 98,000 new jobs in March, marking the smallest gain in nearly a year. This is a departure from recent metrics coming from the federal government showing a thriving job market and economy. (Source: “U.S. jobs growth slumps to 98,000 in March,” MarketWatch, April 7, 2017.)
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The slowness in job growth impacted analysts’ sentiments regarding the strength of the U.S. economy, which in turn sent gold prices to $1,254 per ounce. Unemployment, despite the slow job creation numbers in March, is now at a near-decade low of 4.5%.
The continued tension in Syria is also likely to continue to push gold prices higher. With the U.S. military bombing a Syrian government-controlled airfield last week, investors are concerned over the implications that such a move could have on the market, and therefore are looking to gold as a hedge investment, as is usually the case.
The U.S. has also become increasingly bellicose in regards to North Korea, positioning military assets within striking distance. Meanwhile, the first meeting between Chinese President Xi Jinping and U.S. President Donald Trump went off without any major political gaffes or noticeable conflict.
The U.S has come under criticism by Chinese media, however, for its action regarding the Syrian military conflict. The airfield bombing was in retaliation for an alleged chemical attack carried out by the Syrian military. The issue is only further complicated by Russian presence in the region. Reports from the airstrike claim that the Russians were warned about the attack beforehand, and therefore were able to remove their assets from the airfield before the missiles were launched.
There have not been any follow-up attacks by the U.S. military in the region on a Syrian government target since the airfield bombing.
