Gold falls from a 11-week high on technical selling

UNITED STATES (OBSERVATORY) –¬†Gold prices fell on Thursday after hitting an 11-week high in the previous session on technical sales and profit taking, although fears about a possible US military move against Syria supported the precious metal.

By 0704 GMT, spot gold fell 0.2 percent to $ 1,350.59 an ounce after four consecutive sessions of gains.

Gold futures in US futures fell 0.4 percent to $ 1354.10 an ounce.

The metal touched $ 1365.23 an ounce in the previous session, the highest since Jan. 25, before cutting gains on expectations of a faster rate hike after the release of the minutes of the latest meeting of the Federal Reserve Monetary Policy Committee.

Gold is usually used as a store of value in times of financial and political uncertainty.

President Donald Trump warned Russia on Wednesday of imminent military action in Syria in response to an alleged poison gas attack, saying the missiles were “coming” and criticizing Moscow for backing Syrian President Bashar al-Assad.

The precious metal also received support from continuing fears of a US-China trade war.

The Chinese Ministry of Commerce said on Thursday that China would not hesitate to respond if the United States stepped up its trade dispute with Beijing, asserting that President Xi Jinping’s commitment to reduce import duties was not a concession to the United States.

Among other precious metals, silver rose 0.2 percent in spot trade to $ 16.66 an ounce.

Platinum rose 0.2 percent to $ 928.20 an ounce, while palladium dropped 0.6 percent to $ 959 an ounce.

Palladium rose more than 6 percent this week on fears that supplies from Russia, the biggest producer of the metal, would be adversely affected by US sanctions.