US gold falls on profit taking

Gold futures on the COMEX division of the New York Mercantile Exchange went down further Friday on profit taking ahead of the Labor Day holiday. The most active gold contract for December delivery dropped 16. 8 dollars, or 1.19 percent, to settle at 1,396.1 dollars per ounce. But gold still gained 6.3 percent in August, thanks to growing physical demand and short covering. Negative to gold were fading market expectations for an imminent military action against Syria. British parliament has rejected the use of force in Syria and a further vote has been set for early next week. The Obama administration is now working on a unilateral military action against Syria. Investors' concerns about scale-down in assets purchase by the U.S. Federal Reserve also weighed on gold market. Economic data released Friday were neutral to gold market. The University of Michigan-Thomson Reuters consumer-sentiment index fell to 82.1 at the end of August from 85.1 in July; and Chicago purchasing managers index (PMI) increased to 53.0 from 52.3 in July. Readings above 50.0 indicate expansion. Gold market will embrace its peak season in September and November, as indicated by data going back to 1975. Gold trading on the Comex will be suspended Monday for the Labor Day holiday and will be resumed Tuesday. Silver for December delivery dropped 62.7 cents, or 2.6 percent, to close at 23.513 dollars per ounce. Platinum for October delivery gained 4.7 dollar, or 0.31 percent, to close at 1,527.1 dollars per ounce.