Investing.com - Gold futures traded slightly lower in the early part of Thursday’s Asian session as the U.S. dollar gained some strength against most of its major rivals.
On the Comex division of the New York Mercantile Exchange, gold futures for October delivery fell 0.15% to USD1,416.40 per troy ounce in Asian trading Thursday. The October contract settled lower by 0.11% at USD1,418.50 per ounce on Wednesday.
Gold prices shot up on Tuesday amid concerns that the U.S. may launch limited missile strikes against Syria for its alleged use of chemical weapons in its civil war despite warnings to avoid such actions from Russia, China and Iran.
British Prime Minister David Cameron drafted a United Nations resolution condemning the use of chemical weapons in Syria while "authorizing necessary measures to protect civilians" on Wednesday.
The U.N. Security Council was studying draft language, and with a veto possibly to come from Syrian allies Russia and China resulting in a deadlock, U.S. and U.K. policymakers may look beyond diplomatic deadlocks and seek ways to justify military strikes without a U.N. mandate.
Amid the geopolitical tumult, traders moved out of gold in slight fashion to embrace the U.S. dollar as a safe-have alternative.
Another tepid U.S. data point pressured riskier assets Wednesday. In U.S. economic news out Wednesday, the National Association of Realtors said that its pending sales index fell for July 1.3% from June. That is the second straight monthly drop. The pending home sales index was 109.5 last month. A reading of 100 is considered average or normal.
Elsewhere, Comex silver for December delivery fell 0.27% to USD24.373 per ounce while copper for December delivery lost 0.19% to USD3.311 an ounce.
