PRECIOUS-Gold eases after 5-day rally, Syria eyed
* Traders wait for fresh news on Syria, take profits * Physical demand weakens, scrap selling picks up * Asian shares bounce from sharp losses (Updates prices) By A. Ananthalakshmi SINGAPORE, Aug 29 (Reuters) - Gold eased on Thursday from a five-day rally that had pushed it to its highest since mid-May, losing some of its safe-haven appeal as the chance of imminent U.S. military strikes against Syria seemed to diminish and investors booked profits. 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 U.S. 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 U.S. strikes, but since it is expected to be a short engagement, the rally will not be that huge." Spot gold had dropped 0.8 percent to $1,406.40 an ounce by 0650 GMT on Thursday. 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. PHYSICAL SELLING UP Demand for physical gold in Asia slowed this week as spot prices surged and emerging market currencies plunged. Premiums in Singapore, Hong Kong and Tokyo all fell from two weeks ago. Standard Bank's Ikemizu said consumers were selling their old gold due to the higher prices, especially in Southeast Asia. "We hadn't seen any scrap selling in the last couple of months. The $1,400 level is enough to bring some sellers," Ikemizu said. Precious metals prices 0650 GMT Metal Last Change Pct chg YTD pct chg Volume Spot Gold 1406.40 -11.24 -0.79 -16.01 Spot Silver 23.90 -0.44 -1.81 -21.07 Spot Platinum 1521.00 -9.60 -0.63 -0.91 Spot Palladium 739.00 -4.00 -0.54 6.79 COMEX GOLD DEC3 1406.80 -12.00 -0.85 -16.05 27916 COMEX SILVER SEP3 23.95 -0.45 -1.83 -20.99 7287 Euro/Dollar 1.3268 Dollar/Yen 98.09 COMEX gold and silver contracts show the most active months (Reporting by A. Ananthalakshmi; Editing by Joseph Radford and Tom Hogue)
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