Syria Fears Weaken Gold

Syria Fears Weaken Gold (CNBC)

Both concerns over possible action to be taken against Syria and next week’s Federal Reserve meeting combined to push gold to a five-week low. “Gold’s drop at the beginning of the week was mostly due to the waning safe-haven buying after the diplomatic action in Syria,” MKS SA Senior Vice President Bernard Sin said. He continued, “But now it’s all about the Fed tapering talks and expectations that the central bank will start, albeit slowly, as soon as this month.” Mitsubishi analyst Jonathan Butler said, “If the Fed defers the decision on tapering we could well see gold take back some of the ground that has lost in the last few days.”