Gold Declines Toward a 1-Week Low as Syrian Tensions Ease
U.S. President Barack Obama said on Aug. 31 he will ask members of Congress to back his plan for a military strike on Syria. The metal slid 17 percent this year as some investors lost faith in gold as a store of value and on speculation the Federal Reserve will slow stimulus. Gold rebounded from a 34-month low of $1,180.50 in June as lower prices boosted demand for jewelry, bars and coins in Asia. Hedge funds and other large speculators are the most bullish since January and sales from bullion-backed exchange-traded products last month were the least this year. “Uncertainty on whether or not military action will be taken against Syria has taken off some of gold’s safe-haven bid,” Joni Teves, an analyst at UBS AG in London, wrote today in an e-mailed report. “The recent move in gold positioning clearly indicates further reluctance to be short. On the physical front, activity has been quiet of late, as can be expected given elevated price levels.”