The ongoing discussion of the military attack on Syria by the U.S. and its allied U.K. and France has turned into a movement. The U.S. President Barack Obama was backed up by the House Speaker John Boehner and Majority Leader Eric Cantor on making military execution in response to the alleged use of chemical weapons by Basar-al-Assad’s regime. Lately, the U.S. Senate has approved for further discussion in the full Senate next week for the partial use of military force in Syria. This has held the Syrian strike for a week long.

On the other hand, before the Fed’s meeting on September 17-18, the Minneapolis Federal Reserve Bank President Narayan Kocherlakota spoke against reducing QE unless the unemployment rate moves down to 6.5% with controlled inflation of 2%. On September 17-18 the Fed’s meeting, is likely to reduce the $85 billion asset purchased monthly.

The above two consecutive news, has hit hard both the oil and precious metals especially gold and silver. Also, the speculation of the tropical cyclone in the southeast of Puerto Rico has increased the demand for the power-plant fuel. According to the EIA, the power generation accounts for 32% of the U.S. gas demand which has shown gains in October futures delivery in NYMEX.

The U.S.’s high probability of strike against Syria has rallied up the gold. The bullion for immediate delivery increased 0.3% and gold for December delivery rose 0.2% in NYMEX. The increase of the sales of the American Eagle silver coins by the U.S. Mint reached up to 33.73 million ounces this year. The biggest user of the silver, China, after the U.S., has increased its imports for ornamental purpose and as an industrial metal.

The news of the U.S. rising up in the world’s competitiveness rankings to the 5th position from the last year’s 7th position with supporting data of reduced unemployment claims and increased GDP, shows improving economic condition of the U.S. Though, the oil prices is likely to be affected by the geo-political tension in the Middle East with shortage of supply and its impact on the rising prices, the gold and silver are even today the most lucrative investments in hedging the inflation and among the best instruments of the portfolio in the current situation.