Gold rallies as U.S. strikes Syrian base

Gold rallied to the highest in almost five months after the U.S. launched a missile strike against Bashar Assad’s regime in Syria. The metal was supported by a report that showed the American economy added fewer jobs than economists expected.

Spot gold climbed as much as 1.5 percent to $1,270.87 an ounce in New York, the highest intraday since Nov. 10, and broke through the 200-day moving price average, indicating upward momentum. Bullion later pared gains as traders looked past the geopolitical situation and the flight to quality eased.

The decision to strike Syria marks a reversal for President Donald Trump, who during his campaign faulted past leaders for getting embroiled in conflicts in the Middle East. Secretary of State Rex Tillerson told reporters that “steps are underway” to

mobilize a coalition to remove Assad, a Russian ally.

“There’s clearly an element of risk aversion in the market, so you have buying of gold,” said Georgette Boele, a currency strategist at ABN Amro Bank NV in Amsterdam. The metal has been close to the 200-day moving average for some time and “needed something like this to break through.”

The U.S. action followed a gas attack in Syria’s Idlib province earlier this week. Announcing the strike, Trump said: “There can be no dispute that Syria used banned chemical weapons.” Syria has denied responsibility.

Miners were boosted by the rise in gold, with Randgold Resources Ltd. climbing 4.3 percent in London, while AngloGold Ashanti Ltd., the world’s third-largest miner of the metal, climbed 3.8 percent and Gold Fields Ltd. rose 6.3 percent in Johannesburg.