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Gold prices fell , losing the all previously earned position today , which was associated with the recent rise in the dollar and weak demand from investors.
Yesterday the price of the precious metal reached its lowest level since mid-February, after data on the U.S. housing market , which exceeded expectations , and increased confidence in the U.S. economic recovery and booming stock markets.
Impact on the dynamics of today's U.S. data , which showed that new home sales in the U.S. fell last month to its lowest level in eight months , suspending the process of restoring the housing market. According to the report , the seasonally adjusted sales of new homes fell in March by 14.5 percent, reaching an annual rate of 384,000 units, and fixing the second consecutive monthly decline . We add that the figure for February was revised up to 449,000 units from 440,000 . Economists expected new home sales to rise to 450,000 units. Compared to March of last year, sales were down 13.3 percent , noting the largest decline since April 2011 .
Physical demand in Asia, which aims to provide some support at lower price levels, has not appeared after the fall on Tuesday , as buyers expect more price cuts, dealers said . Demand was also weak from buyers in China , as a weaker yuan made it more expensive to purchase . Note that today the Chinese yuan reached a 16- month low against the dollar .
Meanwhile, adding that India's gold imports in April and May can be halfway below the March figure due to restriction on the movement of cash during the general election .
"The market is supported at $ 1,275 , but if it is passed, prices will fall to $ 1,250 . Market pessimistic because demand in the physical market is absent even at a price below $ 1,300 . Sales by exchange-traded funds - another negative factor , "- said Standard Bank branch manager in Tokyo Yuichi Ikemidzu .
June futures on COMEX gold fell to $ 1283.60 .
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