After President Obama announced the killing of Osama bin Laden, markets around the world rallied on the news with silver prices declining at one point by as much as 13%.
Analysts say the news may help consumer spending and reduce security risks as news spreads that the so called “father” or terrorism is dead.
The Dow Jones Industrial Average was up 0.5% in early trading.
In Asia, Japan’s Nikkei 225 index gained 1.6%, closing above the 10,000 level for the first time since mid-March, when the country was struck by a deadly earthquake and tsunami.
The news is short lived and analysts expect it will do little to ease long term risks facing the U.S. and other global economies.
“There is always a reaction in commodities to news of this nature,” said David Lennox of Fat Prophets.
“The markets will always react quickly, and in this case it is someone who has been held out as the father of all terrorism.
But any easing we might see in oil or gold markets, in my view, will be short-lived. The longer-term impact will not be substantial.”
Analysts also warn of increased threat levels at U.S. embassies abroad from Al Qaeda.
“The immediate thing is how it will affect US assets: its embassies, personnel and physical installations,” said Arjuna Mahendran, chief strategist at HSBC Private Bank.