Gold’s safe haven reputation ‘affected by Syria situation’

<p>The ongoing civil war is having an impact on gold prices.</p>

Gold prices are being affected by the ongoing Syrian civil war, with the US Congress set to vote on a military strike next week.

The UK parliament has already vetoed Britain's involvement in military action against the Syrian leader Bashar al-Assad at this stage.

Joni Teves, an analyst at UBS AG in London, explained gold's reputation as a safe haven has taken a hit in the last few days due to the Syrian situation.

"The recent move in gold positioning clearly indicates further reluctance to be short. On the physical front, activity has been quiet of late, as can be expected given elevated price levels," he said in a report published by Bloomberg.

Mr Teves noted that the uncertainty over a potential military strike is making investors nervous.

US president Barack Obama is thought to be in favour of a military strike in response to al-Assad's alleged use of chemical weapons.

However, he announced over the weekend that he would seek the approval of Congress before giving the green light for any military action in Syria.

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