Don't call it a comeback. Although gold enjoyed an impressive summer revival, its momentum has shifted.
The precious metal has slumped 7 percent since hitting a recent peak of $1,420 an ounce on August 27. That's after it had climbed up from $1,212, its lowest level in almost three years, on June 27.
One of the reasons investors buy gold is that it offers an alternative to more traditional financial assets. When financial markets get jittery, investors often buy gold because it is considered one of the safest assets that can easily be converted to cash.
Gold surged in August as investors grew concerned about when and by how much the Federal Reserve will pare back its bond-buying stimulus program, a major driver behind the market's rally. Strife in Egypt and Syria also reminded investors that it's a dangerous world: wars can spread and oil prices can spike, hurting economies and stock markets.
As the likelihood of an immediate U.S. military strike on Syria diminished, investors moved their money out of gold. Gold prices already largely reflect what investors expect from the Federal Reserve at its meeting next week, but any surprising statements could certainly jolt gold prices once again.Associated Press