Gold Bounces Back But Stays Under $1400

SINGAPORE (Sept 5)   Gold futures bounced back in the Asia electronic trades today, however the metal stayed under $1400 an ounce the lowest in nearly two weeks.

Gold for December delivery is trading up $3.2 at $ 1393.2 an ounce on the Comex division of the New York Mercantile Exchange. Yesterday, it fell $22, or 1.6%, to settle at $1,390 an ounce after rising 1.1% Tuesday. Prices marked their lowest settlement since Aug. 22.

The Syrian conflict remained a key focus for the market, with reports late Tuesday saying leaders of the U.S. Senate Foreign Relations Committee had reached a deal on a bill to approve military action against the Syrian regime.

The likelihood of a U.S. strike on Syria appeared to grow Tuesday after House Speaker John Boehner said he would support President Barack Obama’s request to authorize a military strike.

Gold investors were also looking ahead to Friday’s U.S. jobs report for signs of whether it will push the Federal Reserve closer to tapering its $85-billion-a-month asset purchases.

MCX October gold futures may open today’s session near Rs 32700-750 levels with resistance near Rs 32900 levels with support around Rs 32500 levels.