The perceived notion that there will now be US led military action against the Syrian regime of Bashar al-Assad has investors going in to precious metals and other safe harbor assets ahead of Thursday, the expected date of a missile strike.

Spot gold held above 1400 since yesterday and has now gained 20 percent since the Comex low of 1180 USD/oz. on June 28 of this year.

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Another interesting event to watch play out in the gold market will be the strikes threatened by South Africa’s National Union of Mineworkers. A little over a year ago we watched strikes at South Africa’s platinum mines have a huge influence in upticks in the spot price of platinum. Moreover, it’s important to note South Africa’s direct influence on the platinum market exceeds that of what their mining production contributes to the gold market. 

Following the sell off yesterday, markets look relatively stable this morning; however, this is pricing in some form of action in the Middle East tomorrow.

Crude oil, the world’s largest traded commodity will be the key market to watch as investors fear supply disruptions to trade routes through Egypt. The Suez Canal transports approximately 800 thousand barrels a day, and Suez-Mediterranean (Sumed) Pipeline Egypt’s main pipeline handles 1.7 million barrels.

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