Gold rises from eight-month low on Syria to physical purchases

LONDON: Gold today rose from an eight- month low as investors assessed air-strikes in Syria and signs of more physical demand against the outlook for an improving US economy. Silver gained from the lowest price in four years.

Gold gained 0.8 per cent to $1,225.13 an ounce. Prices reached 1,208.40 yesterday, the lowest since January 2. Silver also rose 0.9 per cent to $17.89 an ounce, after reaching $17.34 yesterday, the lowest since July 2010.

The US and its Arab allies launched a barrage of air-strikes against Islamic State positions in Syria, while Israel shot down a Syrian fighter jet. Demand in China and India, the largest buyers, typically increases from September ahead of festive periods and the wedding season.