The price of gold was moving lower Thursday morning as fears of US military intervention in Syria receded and traders look ahead to next week's FOMC meeting.
Gold for December delivery, the most actively traded contract, lost $22.30 to $1,341.50 an ounce. Yesterday, gold settled marginally lower with possibilities of a military strike against Syria fading out on its agreeing to a Russian proposal to hand over its chemical weapons for destruction. Investors also awaited further cues on the economy and the Federal Reserve plans for tapering its quantitative easing program at its policy meet next week.
Holdings of SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, were unchanged at 917.13 tons.
Meanwhile, the U.S. dollar was lingering near its 2-week low versus the euro and the Swiss franc. The buck was extending its 7-month low against sterling, while trading higher against the yen.
In economic news, euro zone industrial production declined at a faster-than-expected pace in July driven by widespread weakness across sub-sectors, official data showed. Industrial output fell 1.5 percent in July from a month ago, reversing a 0.6 percent rise in June, Eurostat reported. It was forecast to fall by 0.3 percent.
Meanwhile, the prices of silver and platinum were moving lower in morning deals.
From the U.S., the Labor Department will release its jobless claims report for the week ended September 7 at 8:30 am ET. Economists expect jobless claims to increase to 330,000 from 323,000 in the previous week.
Separately, the Department will release its report on export and import prices for August. Economists expect the export index to edge up 0.1 percent from the previous month, while import prices may have risen 0.5 percent.
