Gold Trades Near Highest Since May as Syria Tensions Spur Demand

Gold traded near the highest level since May after a four-day rally as speculation that the U.S. may lead military strikes against Syria within days spurred investors’ demand for a haven. Silver advanced.

Bullion for immediate delivery rose as much as 0.3 percent to $1,419.55 an ounce and was at $1,415.75 at 8:43 a.m. in Singapore. Prices climbed to $1,423.95 yesterday, the highest since May 15. Gold for December delivery declined 0.3 percent to $1,415.90 an ounce on the Comex after rising 2 percent yesterday.

The U.S., France and Britain stepped closer to a strike against Syria, laying the legal groundwork to justify military action, moving forces into place and rounding up allies. Syria is suspected of launching an Aug. 21 chemical-weapons attack outside Damascus. Gold is heading for a second monthly rise.

The Standard & Poor’s 500 Index (SPX) dropped 1.6 percent yesterday, the most since June 20, while the MSCI Asia Pacific Index retreated 1.1 percent today. West Texas Intermediate crude rose for a second day amid speculation supplies may be disrupted.

Assets in the SPDR Gold Trust reached the highest since Aug. 1, gaining 0.1 percent to 921.03 metric tons, according to data on the fund’s website. Holdings rose for a second week in the five days to Aug. 23 as prices rebounded from a 34-month low in June.