Syrian political change and global unrest fueled a $40 surge in spot gold.

On Monday (December 9),What are the regular foreign exchange platforms international precious metal prices soared. Spot gold rose by nearly $40 and spot silver by almost 4%. Specific market data shows that at the time of reporting, spot gold was at $2670 per ounce, the highest level since November 26. Gold futures prices also rose by about $40, reaching $2697 per ounce, at one point breaking the $2700 mark. Spot silver was at $32.20 per ounce, the highest since November 7, with an intraday increase of nearly 4%, or $1.25. Silver futures rose more than 4%, at $32.90 per ounce.

Analysis points out that the rise in precious metal prices is mainly due to a surge in safe-haven demand. Especially over the weekend, the Syrian political situation changed dramatically, becoming the focus of market attention. Syrian anti-government forces succeeded in overthrowing Bashar al-Assad's regime, ending his 24-year rule. Syrian Prime Minister Jalali stated on social media that he is ready to cooperate with the "people's chosen leader" and promised a "peaceful transfer of power." Israeli Prime Minister Netanyahu called it a "historically significant day" in the Middle East.

This political change has raised concerns about further turmoil in the Middle East. Analysts believe Syria may face deeper unrest or even civil war, as the anti-government forces lack the capability to quickly unify the country or establish a stable regime. Meanwhile, Syria's political shift prompted military reactions from the United States and Israel, with both countries conducting airstrikes on multiple military targets in Syria to prevent the new regime from acquiring weapons and ammunition. The global market's concern over regional instability has shown strong safe-haven sentiment, driving up gold and silver prices.

Besides the Syrian situation, South Korea's political crisis also triggered some safe-haven demand. South Korea's Ministry of Justice announced a travel ban on President Yoon Seok-youl, suspected of "insurrection," raising concerns about political instability in South Korea both domestically and internationally. This event further exacerbated global market uncertainty, boosting precious metal demand.

In terms of demand, China's shift to a more relaxed economic policy also impacted the precious metal market. In its latest policy statement, the Chinese government proposed "strengthening extraordinary counter-cyclical adjustments" for the first time and announced a move towards a "moderately loose" monetary policy. This policy shift boosted China's asset market and raised expectations for an increase in gold demand.

Furthermore, the World Gold Council's report last week showed that global central banks' net gold purchases in November reached 60 tons, the highest level this year. The Reserve Bank of India was the largest buyer, increasing its gold reserves by 27 tons. This further reflects how global central banks have been increasing gold reserves amid growing uncertainties, boosting gold's safe-haven demand.

Overall, the political upheaval in Syria, the political crisis in South Korea, and adjustments in China's economic policies have collectively driven the surge in precious metal prices. As global political uncertainties intensify, precious metals are likely to continue to attract safe-haven investments.

Risk Warning and Disclaimer

The market carries risks, and investment should be cautious. This article does not constitute personal investment advice and has not taken into account individual users' specific investment goals, financial situations, or needs. Users should consider whether any opinions, viewpoints, or conclusions in this article are suitable for their particular circumstances. Investing based on this is at one's own responsibility.

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