Gold slips as stocks soar

Gold has taken a tumble as political tension surrounding Syria cools and the prospect of a war recedes.

At the end of last month when it was alleged that President Assad used chemical weapons on his own people, the price of gold was pushed up as traders shied away from the uncertainty that comes with the possibility of conflict. Gold is deemed to be a quality asset, which means traders buy it when the risk factor is perceived to be high.

Russia has now suggested that Syria put its chemical weapons under the control of international hands, which has somewhat defused the situation, and militarily invasion of Syria appears to be less likely. Traders are consequently taking their money out of gold and investing it in risker assets once more, such as equities. If the old tensions start to flare up, however, we could see gold rally.

Dealers will also be keeping an eye on the US Federal Reserve as the most recent unemployment data shows that the jobless rate dropped to 7.3%, and the Fed is using unemployment as a benchmark for tapering. William Dudley of the Fed is making an announcement on Thursday; if he states that tapering could begin next month we could see the US dollar rally and the price of gold fall.

Spot gold chart

This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.

CFD’s zijn complexe instrumenten en brengen vanwege het hefboomeffect een hoog risico mee van snel oplopende verliezen. 79% van de retailbeleggers lijdt verlies op de handel in CFD’s met deze aanbieder.
Het is belangrijk dat u goed begrijpt hoe CFD's werken en dat u nagaat of u zich het hoge risico op verlies kunt permitteren.
CFD’s zijn complexe instrumenten en brengen vanwege het hefboomeffect een hoog risico mee van snel oplopende verliezen.