* Spot gold targets $1,339 -technicalsID:nL3N0H80CA * Coming up: U.S. weekly jobless claims at 1230 GMT (Updates prices, adds quotes) By Lewa Pardomuan SINGAPORE, Sept 12 (Reuters) - Gold fell more than half a percent to its weakest level in three weeks on Thursday, as hope grew that a U.S strike on Syria could be avoided and on expectations the U.S. Federal Reserve would start to unwind its monetary stimulus soon. Gold's safe-haven appeal has been dented by diplomatic efforts to place Syria's chemical weapons under international control, which may avert a U.S. military strike.ID:nL2N0H71L6 GoldXAU= had dropped $8.03 to $1,358.11 an ounce by 0400 GMT, after hitting a low of $1,354.10 - its weakest since August 20. Prices remain way off their record high around $1,920, struck in 2011. "It looks like with the politicians taking a much more measured approach to the problem in the Middle East, gold has lost its shine again," said CIMB regional economist Song Seng Wun. "In the absence of any other development, people are taking some money off the table again, although I think that both the short-term and medium-term view towards gold hasn't changed," said Song, adding that data suggesting inflation is starting to creep back could still support the metal. <^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ For a 24-hour gold chart analysis:http://graphics.thomsonreuters.com/AS/WT1/20131209093132.jpg ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^> U.S. goldGCcv1 declined $5.60 to $1,358.20 an ounce. The Fed's Open Market Committee (FOMC) is set to meet on Sept. 17-18, with investors fretting that the central bank will start curbing the massive bond buying programme that has boosted gold's appeal as a hedge against inflation. Gold prices have fallen more 18 percent since the Fed signalled it would start reining in its monetary stimulus programme by year-end. "We expect that with the FOMC meeting looming on the horizon, gold will trade quietly for the next few sessions, with the resultant moves in the U.S. dollar and Treasury yields to drive gold directionally," ANZ said in a report. Metals consultancy Thomson Reuters GFMS said gold prices were likely to contract further in 2014 due to confidence in a stabilising global economy.ID:nL5N0H73YN Elsewhere, the physical market in Singapore saw sales of gold scraps from Indonesia, whose rupiah currencyIDR= has tumbled to its weakest since 2009, while demand from main consumer India was muted.GOLD/ASIA1 "The physical market has been slow even though gold prices have come down. I would think the price has to fall below $1,350 before we see more buying. Weakness in regional currencies is also curbing buying interest," said a dealer in Singapore. "India is still affected by the new regulations." India has raised the import duty on gold to a record high of 10 percent in an effort to stem the tide of imports of the metal that had helped push the current account deficit to an all-time high.GOL/IN Precious metals prices 0400 GMT Metal Last Change Pct chg YTD pct chg Volume Spot Gold 1358.11 -8.03 -0.59 -18.90 Spot Silver 22.95 -0.21 -0.91 -24.21 Spot Platinum 1466.24 0.64 +0.04 -4.48 Spot Palladium 688.00 -2.50 -0.36 -0.58 COMEX GOLD DEC3 1358.20 -5.60 -0.41 -18.95 17590 COMEX SILVER DEC3 23.01 -0.17 -0.72 -24.09 3902 Euro/Dollar 1.3319 Dollar/Yen 99.59 COMEX gold and silver contracts show the most active months (Editing by Joseph Radford) ((lewa.pardomuan@thomsonreuters.com)(+65 68703834)(Reuters Messaging: lewa.pardomuan.thomsonreuters.com@reuters.net))
((Multimedia versions of Reuters Top News are now available for: * 3000 Xtra : visithttp://topnews.session.rservices.com * BridgeStation : view story .134 * Reuters Plus : from your WebDSS screen For more information on Top News, visithttp://topnews.reuters.com )) Reuters Terminal users can see related news and prices by double clicking on the codes in brackets: - All precious metals headlinesGOL - Precious metals market reportsGOL/ - Daily fixing headlinesGOL/FIX - Indian gold reportsGOL/IN - European gold pricesGOLD/EU1 GOLD/EU2 0#PREC - London interbank gold forward ratesGOFO 0#GOFO= - London silver forwardsSIFO SIFO= - Gold lease ratesLGLR 0#LGLR= - London Bullion Market AssociationLBMA01 - New York Comex gold0#GC: and silver0#SI: - New York platinum0#PL: and palladium0#PA: - Asian gold pricesGOLD/ASIA1 0#PREC - Australian precious metals prices0#AUPREC= - Shanghai Gold Exchange pricesSGE/MENU - Hong Kong gold exchange pricesHKGG - Indian bullion pricesINBULL 0#PREC-IN - Japanese producer pricesJP/PROD1 For Related News and other topics, double click on one of these codes: SPEED GUIDESCOMMOD ENERGY PRECIOUS/1 PRECIOUS/2 REUTERS ))
Keywords: MARKETS PRECIOUS/
