This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
See Cramer's multi-million dollar portfolio for FREE and get his new book Get Rich Carefully! Learn More

Gold Falls as Prospects for U.S.-Led Airstrikes Against Syria Fade

NEW YORK (TheStreet) -- Gold prices were sinking on Thursday for a second consecutive session as the likelihood of strikes against Syria faded.

Gold spiked on a fear trade last week after Secretary of State John Kerry announced that Syria had used chemical weapons against its own people and that the United States would consider a response.

Gold for December delivery at the COMEX division of the New York Mercantile Exchange was tumbling $22.10 to $1,367.90 an ounce. The gold price traded as high as $1,400 and as low as $1,364.70 an ounce, while the spot price was falling to $1,367.49.

"It seems like this talk about Syria is just taking the back burner," Phil Streible, senior commodities broker at RJO Futures, said in a phone interview from Chicago. "It seems like the U.S. completely has been ostracized on this deal; no one wants to get involved."

As reports mount that President Obama and leaders of Congress are facing headwinds among Senate and House politicians of both major parties, gold prices have been relinquishing the gains priced in when markets expected at least a limited U.S. airstrike against Syria.

In interviews with TheStreet on Aug. 30, traders warned that gold prices would plummet if politicians decided to avoid taking military action. Through midday trading, the yellow metal has receded more than 3.5% since last week's closing high.

"There were traders who bought into the idea of owning gold prior to the conflict," said George Gero, precious metals strategist at RBC Capital Markets. However, if Obama, House Speaker John Boehner and Senate Majority Leader Harry Reid do rally enough support for U.S. action, downside pressure could remain.

"Generally when you do have a major conflict, some gold is sold to finance a war," said Gero.

Silver prices for December delivery were slipping 18 cents to $23.24 an ounce. Adding to pressure on gold was a pop in the U.S. dollar index, which was jumping 0.52% to $82.60.

Gold mining stocks were mostly lower on Thursday. Shares of Agnico-Eagle Mines (AEM) were dropping 4.3%, while shares of Barrick Gold (ABX) were off 1.8%.

Stock quotes in this article: GLD, IAU, AEM, ABX 

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto
Advertising Partners

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs