The roaring up of the potential U.S. intervention in Syria with its allied U.K. and France has been hauled as U.K. Prime Minister David Cameron’s proposal was rejected by the House of Commons. Also, France admitted to wait for the results of United Nations investigation into Syria’s alleged use of chemical weapons. The day before, though the oil had hiked, today the prices dropped 1.2% with U.K’s and France’s wait and watch situation.

Today the WTI for October delivery declined to 22% of the total volume of all futures traded at New York Mercantile Exchange.  Also, in London-based IFC Futures Exchange for the Brent for October settlement dropped by 1.2%. Saudi Arabia, the biggest producer among OPEC has increased its output by 0.4% to 9.95 million b/d on August and is likely to continue the trend.

The U.S. GDP rose at an annual rate of 2.5 percent in the second quarter up from an initial estimate of 1.7% of 2013. Jobless Claims in the week ending August 24 decreased 6,000 to 331,000 from the previous week's revised figure of 337,000. This shows upward trend of the U.S. economy and stronger US dollar.

The investors are now shifting their concern from Syrian war to US Fed’s September tapering policy. Fed is likely to slow down the $85 billion in monthly debt purchases as the world’s largest economy is on the improving trend as shown by the increased U.S. GDP and reduced jobless claims.

With the improved U.S. economy and halted Syrian attack, the gold prices have swung between gains and losses. The bullion for immediate delivery dangled on gains and losses as least 0.3% whereas gold for December delivery dropped by 0.3% on Comex. Gold, for The Standard & Poor’s GSCI gauge of 24 commodities rose, 2 percent this year and the MSCI All-Country World Index of equities gained 7.6 percent whereas Treasuries declined 3.2 percent. Silver for immediate delivery gained 0.3 percent.

The upcoming festive seasons in India and China will boost up the gold demand. Though India has restricted the gold bullion imports, China is likely to be the world’s biggest gold consumer this year.

The halt of the Syrian intervention has brought down the investors focus again towards gold from oil and are expecting the Fed’s voice on QE. The improving of U.S. economic data supports strong U.S. currency and though theoretically inverse relationship between U.S. Dollar and gold prices were seen likely to alter.