2013.09.1105:51:24UTC+00Gold floats after Obama’s comments

Gold futures reversed its direction and turned fractionally greater Wednesday after President Barack Obama indicated that he’s open to a diplomatic solution on the Syria crisis but also voiced support for a strike.

In his televised speech Tuesday night, Obama said he had asked Congress to postpone the vote on whether to strike, even as he laid out the reasons a military response is necessary. The market reaction was mostly mild.

The dovish tone of Obama’s remarks didn’t hurt gold for December delivery, which boosted $1.10, or 0.08%, to $1,365.10 an ounce. A day earlier, gold prices relinquished more than $20 an ounce, their largest hit since July 5, amid uncertainty surrounding a U.S. strike on Syria.

“This recent move certainly feels like a Syria-off trade,” said BTIG chief global strategist Dan Greenhaus. “Gold and oil have both stopped rallying, the dollar has pulled back, and Treasurys, which rallied somewhat, have again pulled back, pushing yields back higher.”

Elsewhere in metal trade, December silver increased 11 cents, or 0.5%, to $23.13 an ounce, while December copper climbed 2 cents, or 0.5%, to $3.28 a pound.