Gold crumbles after positive US GDP, Job data;

NEW YORK (Aug 29)  Gold on the Comex has received a dent in prices as US economy grew by 2.5 percent annualized rate in Q2 up from previous quarters' 1.7%. Economists widely expected the GDP to grow by 2.2% and the trumping of expectations along with the dip in initial jobless claims by 6000 last week ensured a dip in gold futures.

Gold on the Comex for delivery on December 13 was seen trading at $1,411.10/oz, a loss of $7.70 or 0.54% as of 06.16PM IST. Gold on India's MCX was seen trading up by 0.4% at Rs.33555/ ten grams.

“Gold and silver have failed to close above their critical resistance levels and a pull back in prices is on the cards. We could see gold falling back towards $1380 if it breaks $1400 and silver could fall to $23.50 level. The strong overnight appreciation in the INR will keep prices much lower and will build pressure on the MCX prices,” said Kishore Narne, Associate Director Head - Commodity & Currency, Motilal Oswal Commodity Broker Pvt Ltd.

But, the Syrian rhetoric gaining din in the international diplomatic circles means that gold recovered later on. While France has said that it is militarily prepared to attack Syria, UN Secretary General Ban Ki-moon says he will get a report on Saturday from weapons inspectors.

"The Armed Forces are in a position to respond to the requests and the decisions of the president once he reaches that point" if he commits French forces to an intervention of international scale in Syria, Defense Minister Jean-Yves Le Drian said