Syria woes: Obama’s speech negative for crude & gold
David Lennox, Fat Prophets says, markets seem to have reacted positively to the news that there won’t be an immediate strike on Syria by the US, but it is negative for both crude and gold prices, he adds. Crude and gold prices, which have been surging on the back of Syria crisis, dropped quite sharply overnight after US President Obama's speech.
Lennox told CNBC-TV18 that the underlying strength in the US economy is gaining more traction and one can expect dollar to strengthen. However, if US carries out the strike on Syria then dollar could weaken.
Seth Freeman, CEO, EM Capital Management also agrees that this news is very positive from market sentiment point of view. "The fact that President Obama would hold on taking a vote in Congress would not only provide an opening for some negotiations but also would provide time to gain consensus in Washington," he elaborates.
Meanwhile, he expects the momentum in Indian equities to continue for some more time. "For the next few days other than profit taking, I would expect both, the market to go up and the rupee to strengthen," adds Freeman