Markets

Gold dips below $1,400 but still set for monthly gain

by Editor

September 2, 2013 | 10:09 am
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Gold fell one percent below $1,400 an ounce on Friday on speculation a U.S. military strike on Syria was less likely and as strong U.S. data rekindled expectation of Federal Reserve’s stimulus tapering soon.

Spot gold fell 1 percent to a session low of $1,392.14 an ounce. It was 0.9 percent lower at $1,394.40 an ounce by 1139 GMT. U.S. gold futures for December delivery dropped $18.10 an ounce at $1,394.80 an ounce.

U.S. officials conceded on Thursday they lacked conclusive evidence that Syrian President Bashar al-Assad personally ordered last week’s poison gas attack on civilians, while Britain’s parliament rejected British participation in any U.S.-led military action against Syria.

“You have a decrease in the risk premium as it seems that the Syrian action is delayed,” VTB Capital analyst Andrey Kryuchenkov said. “Investors are taking profits because nobody wants to be caught short or long ahead of the weekend, when more developments on the geopolitical front are expected.”

The metal had risen to a 3-1/2 month high of $1,433.31 on Wednesday and was headed for its second straight monthly gain of around 5 percent after traders who had positioned themselves for further losses at the start of the month, have had to close out those positions, traders said.

“The move higher in August was driven mostly by short-covering and opportunistic buying, which seems to have now run out of steam,” Kryuchenkov said.

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by Editor

September 2, 2013 | 10:09 am
  |     |     |   Start Conversation

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