Gold futures on the COMEX division of the New York Mercantile Exchange on Wednesday went down to settle at their lowest in nearly two weeks, as the U.S. faced opposition from Russia on a military strike against Syria, eroding demand for gold as a safe haven.
The most active gold contract for December delivery lost 22 dollars, or 1.56 percent, to settle at 1,390 dollars per ounce. According to reports, Russian President Vladimir Putin said he would only support a United Nations resolution for military strikes if there's conclusive proof that the Syrian government used chemical weapons on its people.
Market analysts say Russia's objections are taking some premium out of gold as it's becoming increasingly clear that U.S. will face opposition. Futhermore, the tapering worries remain on the timing for the U.S. Federal Reserve to scale back its monetary stimulus program.
The U.S. Federal Reserve will release a report Wednesday on regional economies. Gold price has dropped 17 percent this year, entering a bear market in April, after some investors lost faith in the precious metal amid low U.S. inflation.
With gold's moving lower on the day, some analysts believe it is counterintuitive, however, traders usually "buy the rumor, sell the fact." Silver for December delivery dropped 1.014 dollars, or 4.15 percent, to close at 23.415 dollars per ounce.