SINGAPORE: Gold eased on Thursday from a five-day rally that had propelled the metal to its highest since mid-May, losing some of its safe-haven urgency as US military strikes against Syria didn't seem imminent and investors booked profit.
The United States and its allies have been discussing possible military action against Syria for last week's deadly chemical attack, stoking buying interest in gold and pushing it above $1,400 an ounce for the first time since early June.
But US President Barack Obama said on Wednesday any strike would be "tailored, limited," even as he faced new obstacles with allies and lawmakers that could delay any immediate action.
"Since there hasn't been any fresh news on the Syrian conflict, some people are taking profit above $1,400 levels," said Yuichi Ikemizu, a branch manager for Standard Bank in Tokyo.
"Gold could rally to $1,440-$1,450 if the US strikes, but since it is expected to be a short engagement, the rally will not be that huge."
Spot gold on Thursday had dropped 0.6 percent to $1,408.84 an ounce by 0309 GMT. It had gained nearly $70 an ounce in the five sessions to Wednesday.
At its 3-1/2 month high of $1,433.31 hit on Wednesday, gold had gained 21 percent from the three-year low of $1,180.71 hit on June 28, pushing the metal into bull-market territory.
Some analysts say prices are bound to fall as the rally over the last few days has also been spurred by short covering and technical buying.
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