Syria is getting some of the blame for the fall in gold prices today. The thinking is that Russian opposition diminishes the chance of a strike but I don’t think that’s anything new. The US won’t ask for Russian permission to drop bombs. If anything, the level of Russian opposition increases the chance of an extended conflict.
In any case, gold is down $24 today after a similar rally yesterday. I’ve picked up a gold long here and I’m prepared to add in the $1360 zone. I have a stop at $1325.
The technical picture for gold remains compelling for a target near $1500. September is a great month for gold seasonals and the considerable uncertainty in the global economy and Middle East will lend a bid. In the immediate term, gold is finding support near $1385.
Gold hourly chart
