Gold gains as consensus builds in for U.S. attack on Syria
Published Sep 03, 2013 01:50PM ET
Gold has served as a safe-haven asset class of choice during the present Syrian crisis.
On the Comex division of the New York Mercantile Exchange, gold futures for December delivery traded at USD1,412.00 during U.S. afternoon hours, up 1.14%.
Gold prices hit a session low of USD1,384.40 a troy ounce and high of USD1,412.60 a troy ounce.
Gold futures were likely to find support at USD1,374.10 a troy ounce, the low from Sept. 1, and resistance at USD1,433.50, the high from Aug. 28.
The December contract settled down 1.19% at USD1,396.10 a troy ounce on Friday.
Key Republican lawmakers including House Speaker John Boehner said earlier Tuesday they'd support a presidential call for U.S. military attacks on Syria via limited air or missile strikes.
The dollar trimmed gains while gold rose earlier Tuesday after Russia’s news agency said a rocket launch was detected in the Mediterranean. Israel later said it carried out a joint missile test with the U.S. as tensions over Syria continued.
Gold continued to post gains despite better-than-expected factory data out of the U.S.
In the U.S. earlier, the Institute for Supply Management reported that its August purchasing managers’ index rose to 55.7 from 55.4 in July, beating analysts' calls for a 54.0 reading.
The report cemented views held by many that the Federal Reserve could start to unwind its USD85 billion monthly bond-buying program at its upcoming Sept. 17-18 policy meeting.
Monthly asset purchases weaken the dollar to spur recovery as long as they remain in effect, making gold more attractive though talk of an end to stimulus programs has the reverse effect.
Still, gold traded higher due to growing unease over a possible U.S. attack on Syria, which softened the dollar.
Elsewhere on the Comex, silver for December delivery was up 3.83% at USD24.413 a troy ounce, while copper for September delivery was up 2.34% and trading at USD3.309 a pound.
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Written By: Investing.com
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