published Apr 6th 2017, 9:23 pm, by Ranjeetha Pakiam

(Bloomberg) —
Gold rallied with haven assets as the U.S. launched a punitive missile strike against Bashar al-Assad’s regime for its use of poison gas to kill civilians, with Secretary of State Rex Tillerson telling reporters that steps are under way to mobilize a coalition to remove the Syrian leader.

Bullion for immediate delivery climbed as much as 1.4 percent to $1,269.46 an ounce, the highest since November, and traded at $1,266.29 at 10:21 a.m. in Singapore, according to Bloomberg generic pricing. The metal is heading for a fourth consecutive weekly rise and has surged 10 percent this year. Miners’ shares jumped as Newcrest Mining Ltd. gained 3.2 percent in Sydney.

The decision marks a reversal for U.S. President Donald Trump, who during his 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 a military airfield. Secretary Tillerson told reporters that “steps are under way” to mobilize a coalition to remove Assad, although that effort would probably come after Islamic State militants in the country are defeated and some stability returns to the country.

“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, it would remain supportive of gold, according to Halley.

Bullion acts as a haven during times of geopolitical conflict. Prices have also risen this week amid signs of escalating tension on the Korean peninsula, with North Korea conducting a ballistic missile test in the run-up to a summit between Trump and Chinese President Xi Jinping.

“The situation in Syria continues to deteriorate, with news of a U.S. missile strike,” Jordan Eliseo, chief economist at Australian Bullion Co., said in an email. “It’s no surprise for gold to catch an immediate safe-haven bid.”

To contact the reporter on this story: Ranjeetha Pakiam in Singapore at rpakiam@bloomberg.net To contact the editors responsible for this story: Jason Rogers at jrogers73@bloomberg.net Jake Lloyd-Smith
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