December Comex Gold closed flat at $1,386 an oz whereas Spot Gold was lower by $2.00 an oz at $1,387.25 an oz.
Russia caught hold of Kerry’s remark for Damascus handing over the chemical weapons to save itself however later Kerry stated that his remarks were a rhetoric and not a proposal. The White House said that it would examine Russia’s proposal that the Syrian chemical weapons be handed over in a neutral control. Meanwhile however President Barack Obama is persisting with the Congress for a military strike but is losing confidence that he will get a go ahead for the military strike.
The Syrian crisis has abated quite a bit although some jittery demand was seen holding the gold price in Monday’s trade.
President Barack Obama will address the nation on television today evening for the case for military intervention against Syria which will be keenly watched world over which might spike up gold prices later in the day.
The FOMC meeting on September 17-18 expected to give final clarity to the tapering of Fed’s Bond buying of $85 bn every month is expected to be marginal given the weaker than expected employment data that came in on Friday which will also factor in the Syrian crisis although a little heightened that some tapering will have to be resorted to as US debt ceiling will be overshot in October requiring the Senate to raise it appropriately. A rising dollar on this account could see downward pressure in gold prices in US$ terms.