Gold prices edged down on Thursday after hitting an 11-week high in the previous session on technical selling and profit-taking, although concerns about possible US military action against Syria underpinned the bullion. Spot gold was down 0.2 percent at $1,350.59 an ounce as of 0704 GMT after four straight sessions of gains. US gold futures fell 0.4 percent to $1,354.10 an ounce.
The bullion touched $1,365.23 an ounce in the previous session, its highest since January 25, before trimming gains on expectations of a faster pace of US rate hikes following the release of minutes of the Federal Reserve's last policy meeting. "Gold prices on Wednesday were near the technical resistance level and, hence, we saw a sell-off from that point," said Hareesh V, head of commodity research, Geojit Financial Services.
"Prices for the last several months are trying to break the $1,370 level, so there was some profit-taking as prices consolidated in the strong resistance region," he said, adding that there was room for an upside as long as geopolitical tensions persist. Gold is often used as a store of value during times of financial or political uncertainty.
"While we expect volatility to remain high, gold will stay supported so as long as US military option remains on the table, gold will continue bid," said Stephen Innes, head of trading in Asia-Pacific for OANDA in Singapore.
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