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Gold, is this retreat temporary?

FXstreet.com (Chicago) – Gold reached $1,433.83 yesterday after concerns over a potential US military intervention in Syria that propelled the price to 3-month highs on risk aversion behavior.

The US has not decided whether or not an intervention should be made in Syria although Obama’s declaration on “limited, tailored” military strike to “send shot across the bow” imply that the possibility of action still exists despite the Security Council’s systems dynamics requiring the votes from countries like China and Russia. The use of chemical weapons violates the Chemical Weapons Convention.

Price action reveals a 0.7% retracement for gold offered at $1,409/oz and a -1.1% retracement for silver, being offered at $24.13/oz.

USD/JPY getting slammed on news that Obama is prepared to bypass UN

The USD/JPY has reversed sharply lower on new reports that the Obama Administration will bypass UN procedures and attack Syria.
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USD/INR down 3% from 69.00 record high

On the back of an uncontrollable spike to fresh all time low just around 69.00, the Indian Rupee has opened at a much higher price level vs the US Dollar today, trading around the 67.00 handle, which implies almost 3% losses for USD/INR on the day. The adjustment towards a more risk-balanced market has undoubtedly helped to stabilize the rate.
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