Gold News & Info

Source: Dr. Bill Musgrave, American Gold Exchange

Austin— Gold fell 1.6% to close at $1,364 as a Russian plan to avert military action against Syria gained traction, reducing safe-haven demand. Syria has apparently accepted a Russian proposal allowing an international coalition to take possession of its chemical weapons for dismantling and elimination. President Obama said a U.S. strike would "absolutely" be put on hold if Syria follows through with the agreement. Risk appetite returned to the markets, with the Dow posting its second straight triple-digit rise and the global Dow rallying1.6%.

Gold rose above $1,420 in late August on fears that military conflict in Syria would disrupt oil supplies in the Middle East, causing a spike in oil prices and potentially undermining the global recovery. Much of that safe-haven premium has now drained away as the likelihood of escalation is decreasing. The dollar rose against most major rivals and oil fell nearly 2%. Silver shed 3% and platinum slipped 0.6% while palladium jumped 1.4% on industrial demand after reports that China's manufacturing output rose 10.4% in August.

At the Comex close: December gold fell $22.70 to $1,364; December silver dropped 70 cents to $23.02; October platinum shed $8.90 to $1,474.10; and December palladium jumped $9.65 to $692.65 an ounce.