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Gold prices fell today, losing more than one percent, which was associated with the acceleration of the outflow from the largest gold exchange-traded fund, as investors shifted their attention toward other assets such as stocks. In addition, experts point out that the strengthening of the dollar also put pressure on prices. Note also that the precious metal retreated from one-week high, which was fixed on the basis of the previous session, as investors were concerned with the state of their positions, which they held for a long time.
Meanwhile, we add that to the dynamics of trade have influenced U.S. data. After reporting a sharp drop in new home sales in the previous month, the Commerce Department released a report showed relatively modest sales growth in March.
The report showed that new home sales in March rose 1.5% year on year to 417,000 from the unrevised 411,000 in February. Economists had expected sales to rise to 419,000.
On a monthly measurement of sales in the primary housing market in the U.S. fell in February by 7.6% from 445 000 four-year high in January. The number of unsold homes in the U.S. in March corresponds to 4.4 months of sales.
At the same time, considering the current situation in the market of precious metals, traders point to the pressure with a shift in the distribution of assets, while Goldman Sachs said it expected further decline in gold prices, coupled with the ongoing flow of the ETF.
Note that the data showed that stocks in the SPDR Gold Trust fell by 1.6%, reaching thus the lowest level since November 2009, which followed the daily falls of less than 1% last week.
The cost of the June gold futures on COMEX today dropped to 1408.30 dollars per ounce.
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