Gold eases as investors weigh Fed stimulus cut

PTI Updated - September 04, 2013 at 05:26 PM.

Gold on Wednesday fell as the prospects for reduced stimulus in the US countered the threat of a military attack against Syria.

Gold fell 0.5 per cent to $1,405.22 an ounce. It reached a three—month high of $1,433.83 on August 28.

Silver also fell 1.6 per cent to $23.89 an ounce.

The US Dollar Index, which tracks the greenback against 10 major currencies, was near the highest since July before the US Federal Reserve releases an outlook survey and data later this week may show payrolls rose.

US President Barack Obama won support from two opposition lawmakers for a military strike on Syria.

Gold climbed 19 per cent from a 34—month low in June as lower prices boosted demand for jewellery, bars and coins in Asia. That cut this year’s drop to 16 per cent, as some investors lost faith in gold as a store of value and on speculation the Fed will slow stimulus.

Published on September 4, 2013 11:56