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Gold price traded lower on a stronger U.S. dollar. The greenback rose after the better-than-expected U.S. existing homes sales data. Sales of existing homes rose 6.1% to a seasonally adjusted annual rate of 5.19 million in March from 4.89 million in February. It was the highest level since September 2013.
The weaker-than-expected economic data from the Eurozone also supported the U.S. currency. Eurozone's consumer confidence index declined to -4.6 in April from -4.0 in March. Analysts had expected the index to climb to -3.0.
Investors were cautious due to the Greek debt crisis. Greece is still running out of cash, and it needs a new tranche of loans. The Greek government hopes to unlock a new tranche of loans (€7.2 billion) at the Eurogroup meeting on April 24. Some European officials expressed concerns that an agreement between Greece and its creditors will be signed this week.
The European Commission President Jean-Claude Juncker ruled out the Greek exit from the Eurozone.
June futures for gold on the COMEX today dropped to 1186.90 dollars per ounce.
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