Despite a number of pessimistic forecasts on gold futures, it was able to trade slightly higher during the beginning of the Asian session. This is in the face of many gloomy predictions on the fortune of the yellow metal.
During the Thursday Asian trading cycle, the December delivery of gold futures moved from 0.04% to $1,364.40 per troy ounce. In fact, on Wednesday the December contract settled lower by 0.01% at $1,363.80 per ounce. It is now very probable that gold futures will gain in support.
The movement in the prices came on the news that Syria is prepared to hand over control of their stockpile of chemical weapons. This is in conjunction with the plan that has been put forth by the Russians, who have sought a diplomatic solution to the ongoing civil war, while America was set to strike.
This is after U.S. President Barack Obama told the world that America is not going to attack Syria for the moment. The vote in Congress is now on temporary hold, as the diplomatic route is being explored. However, the President was clear that the military angle was not off the table, and that certain demands must be met by Syria when giving up their chemical weapons.
This news led to a drop in the price of gold. In fact, the drop in gold is said to continue as the demand drops away toward the end of the year 2013. According to Thomson Reuters GFMS, the price will fall this year, and then return with a substantial rise in 2014, with a projected increase to $1,500 per ounce (USD). The increase in gold is then going to fall again later in the same year.
The news of what is happening in China and India is very important for gold markets, as they are the two largest important of gold in the world economy. In China, there is expected to be a rise in demand, although it is going to be smaller than previously thought and will decrease as the year comes to a close. However in India, the news is not good, as the demand is not going to meet the projected level.
In other related news, the price of Comex silver for December delivery moved up 0.01% – with a price of $23.175. The price of copper for December delivery actually fell 0.14%, with a price point of $3,270 per ounce.