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Gold prices fell sharply today, but standby output of key U.S. economic data led to recover to a session high . Also the cost increased due to short covering and increase reserves backed by gold exchange-traded funds .
"Support is provided growth stocks ETF, it is one of the main reasons to stabilize prices this year. Covering short positions at the beginning of the year , gold's appeal in developing countries as a reliable investment and crisis in Ukraine also support prices," - said the director of Societe analysis of commodity markets Generale Mark Keenan . " But these factors are short-lived . Macroeconomic background is still unfavorable for gold. Since the price could not go above $ 1,400 , the market returned to sales and a decrease in quotations " - added Keenan .
As for U.S. data , they showed that sales of newly built homes fell 3.3% to a seasonally adjusted annual rate of 440,000 compared with the previous month. Strong growth in January was revised downward to an annual rate of 455,000 . February sales were lower than expected by economists and 447,000 were at the lowest level since September.
Another report showed that consumer confidence index has improved markedly in March , while offsetting the decline in February . The index now stands at 82.3 points, compared with 78.3 points in February . Present situation index , meanwhile, fell to 80.4 points from 81.0 points, while the expectations index rose to 83.5 from 76.5 .
Recall that gold is under heavy selling pressure in recent sessions , as market participants and institutional investors have reduced long positions on expectations that the Fed may raise interest rates earlier than previously thought . Fed Chairman Janet Yellen said last week that the bank may start to raise interest rates after approximately 6 months after the QE program is completed, which is expected to happen this fall.
Meanwhile, it was reported that the world's largest reserves secured gold exchange-traded fund SPDR Gold Trust on Monday rose by 0.55 percent to 821.47 tons, and in terms of ounces of reserves peaked in December .
We also add that the physical market dealers point decline in demand from jewelers and individual investors , and the ">The cost of the April gold futures on the COMEX today rose to $ 1312.30 per ounce.
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