Gold Drops on Fading Prospects for Syria Military Strikes

by Christopher Freeburn | September 10, 2013 4:47 pm

Gold Silver GLD IAU SLV[1]Gold tumbled in Tuesday trading as a potential deal to avert U.S. military action against Syria appeared to gain traction in among diplomats, weakening the metal’s safe haven appeal.

A proposal to place Syria’s chemical weapon stocks under the control of international inspectors has received support from Russian, Syrian and American officials. U.S. President Barack Obama told reporters on Monday that the specifics for the agreement had yet to be worked out, but expressed cautious optimism over the potential breakthrough. The deal came as the Obama Administration appeared to face likely defeat in its effort to get Congressional authorization for the strikes.

Gold futures for December delivery fell 1.6% to $1,364 per ounce on Tuesday, according to CME Group[2]. Gold traded as high as $1,391.40 and as low as $1,357.60. Gold bullion closed in London at $1,368, according to BullionVault[3].

Silver futures for December delivery sank 3% to $23.02 per ounce. Tuesday’s high for silver was $23.82, while the low was $22.84.

Gold and silver funds declined in Tuesday trading.

Gold and silver mining ETFs moved down during the day.

Gold mining shares dropped sharply on Tuesday.

Silver mining shares sank during the day.

As of this writing, Christopher Freeburn did not hold a position in any of the aforementioned securities. Adrian Ash of BullionVault[23] contributed to this report.

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