LONDON: Gold was little changed on Tuesday, as investors held off doing business before US economic data that is expected to provide clues on the Federal Reserve's policy moves, while uncertainty remains around a possible strike on Syria by the United States.
The metal rose to a 3-1/2 month high of $1,433.31 an ounce on Wednesday when a US strike on Syria seemed imminent. But safe-haven demand started to abate after US President Barack Obama decided to seek congressional approval and the UK parliament rejected British participation in any military action.
"It is difficult to predict development in the geopolitical situation, but obviously this will be followed by the gold market and if we have a massive crisis prices will rise on the back of it," Standard Chartered analyst Daniel Smith said.
Spot gold was down 0.1 percent at $1,393.20 an ounce by 1101 GMT, while US gold futures for December fell $2.70 to $1,393.40.
The metal hit a one-week low of $1,374.10 in the previous session, but regained some ground on Tuesday, also helped by stronger crude oil prices. The positive correlation between gold and oil has risen in the past few sessions as gold is seen as a hedge against oil-led inflationary pressures.
Prices were, however, kept in check by a stronger dollar , which hit a one-month high against a basket of currencies.
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