Strong dollar also act bearish for bullions
Gold prices closed lower on Wednesday, 28 August 2013 after a 2% rally a day earlier, but losses were modest in the wake of continued concerns about possible military action against Syria.
Gold for December delivery fell $1.40, or 0.1%, to settle at $1,418.80 an ounce on the Comex division of the New York Mercantile Exchange. Prices spent the bulk of the trading session wavering between small losses and gains, though they touched a high of $1,434 and a low of $1,413.20.
Silver prices also retreated and they fell by 26 cents, or 1.1%, to $24.39 an ounce.
As the U.S. appears poised to take military action against Syria after its government regime used chemical weapons against its citizens, the market place is extra nervous. Such has recently favored safe-haven assets such as gold and U.S. Treasuries.
The key outside markets were in a neutral daily posture for the precious metals markets on Wednesday. The U.S. dollar index was higher which was bearish for the precious metals.
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Among economic data expected for the day, the weekly MBA Mortgage Index remained in a downtrend with today's 2.5% fall marking the fourteenth decline out of the past sixteen readings including last week's 4.6% slide.
Separately, July pending home sales fell 1.3%, which was worse than the 0.2% increase forecast by the consensus. Today's reading follows last month's decrease of 0.4%.
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