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Gold Declines on Housing Data to Snap Longest Rally in Six Weeks

Gold bars

BESTPROFIT FUTURES (29/04) – Gold futures fell, ending the longest rally in six weeks, as pending sales of previously owned U.S. homes had the biggest gain in almost three years, crimping demand for the precious metal as an alternative asset.

A report from the National Association of Realtors today showed contracts to purchase existing homes increased 3.4 percent in March, topping estimates by analysts. Earlier, gold reached a one-week high as escalating tensions in Ukraine spurred purchases for a haven. The U.S. imposed sanctions on seven Russian officials and 17 companies linked to President Vladimir Putin™s inner circle.

Gold futures for June delivery fell 0.1 percent to settle at $1,299 an ounce at 1:43 p.m. on the Comex in New York. Earlier, the price reached $1,306.60, the highest for a most-active contract since April 16.

Trading was 27 percent lower than the average for the past 100 days, data compiled by Bloomberg showed. Futures climbed in the previous three sessions, the longest rally since March 14.

The metal tumbled 28 percent in 2013 on speculation that the Federal Reserve would reduce stimulus amid signs of a recovery in the U.S., the world™s largest economy.

Source : Bloomberg