Monday, September 16, 2013
War on Syria Impact on Crude Oil & Gold Prices
ET Now: How do you see the increasing geopolitical risk impacting crude and gold?
Marc Faber: The impact will be more severe on financial assets. The price of gold has recovered sharply from $1180 to around $1400. On further hostilities, we will have some profit taking in gold, but we have made a major low at $1180.
Oil price has already been rising. but could rise further depending on the expansion of the hostilities. Do not forget that Assad, though not a close ally, is aligned with Iran's policy. Therefore, if he is attacked, Iran may perceive this as an attack on Iran and may counter react. The hostilities could escalate and that may mean that the price of oil could rise quite substantially.
Marc Faber is an international investor known for his uncanny predictions of the stock market and futures markets around the world.