Gold surges on haven demand as US missiles hit Syrian targets

[SINGAPORE] Gold rallied with haven assets after the US launched about 60 Tomahawk missiles against a Syrian airfield in a punitive strike after Bashar al-Assad's regime used poison gas to kill scores of civilians.

Bullion for immediate delivery climbed as much as one per cent to US$1,263.56 an ounce and traded at US$1,260.51 at 9:35am in Singapore, according to Bloomberg generic pricing. The metal is heading for a fourth consecutive weekly rise and has climbed almost 10 per cent this year.

The decision marks a reversal for USPresident Donald Trump, who during his presidential campaign faulted past leaders for getting embroiled in conflicts in the Middle East. The attack early Friday morning in Syria targeted hangars, planes and fuel tanks at one military airfield, according to a US official.

"We're seeing a rush to safe-haven buying, in which of course gold will be a major beneficiary," Jeffrey Halley, senior market analyst at Oanda Corp in Singapore, said by phone.

"As long as the situation is quite fluid in Syria, I would expect gold to remain good now."

BLOOMBERG