Sept. 16 (Bloomberg) -- Gold fell in London for the second time in three sessions after Russia and the U.S. approved a plan to destroy Syria’s chemical weapons, diminishing demand for haven assets.
U.S. Secretary of State John Kerry and Russian Foreign Minister Sergei Lavrov agreed Sept. 14 in Geneva on a framework for finding and destroying Syrian President Bashar al-Assad’s stockpiles of poison gas. Gold demand in India and China is also “quiet,” said Bernard Sin, the head of currency and metal trading at bullion refiner MKS (Switzerland) SA in Geneva.
“The fears about an air strike are fast diminishing,” Chris Gaffney, the senior market Strategist at EverBank Wealth Management, said in a telephone interview from St. Louis. “Also, we are not seeing any support come in from physical demand at current prices.”
Gold for immediate delivery declined 0.6 percent to $1,318.49 an ounce at 6:54 p.m. in London. Last week, prices tumbled 4.7 percent, the most since June 28, when the precious metal dropped to $1,180.50, the lowest since August 2010.
Futures for December delivery rose 0.7 percent to settle at $1,317.80 on the Comex in New York. Prices climbed as much as 2.1 percent after former Treasury Secretary Lawrence Summers withdrew from the list of candidates President Barack Obama is considering to be the next Federal Reserve chairman, reducing expectations for an early end to the central bank’s stimulus measures.
Spot bullion has dropped 21 percent this year as investors lost faith in the precious metal as a store of value amid an equity rally and concern that the Fed may slow the pace of its $85 billion monthly bond-purchase program. The central bank begins a two-day meeting tomorrow.
Silver for immediate delivery fell 0.9 percent to $22.0208 an ounce in London, declining for the second time in three sessions. Prices retreated 6.9 percent last week.
Spot platinum slipped 0.9 percent to $1,440.02 an ounce, while palladium rose 0.5 percent to $703.95 an ounce, the second straight advance.
--Editors: Thomas Galatola, Steve Stroth