Gold prices retreated from session lows , but still remain below the opening level . Initially, the pressure exerted on the precious metal standby output data on the U.S. housing market , but the publication itself helped restore prices . As it became known , sales of newly built homes rose in April , becoming the latest sign of the revival of the housing market after the winter stagnation. New home sales rose 6.4% from March to a seasonally adjusted annual rate of 433,000 , said Friday the Ministry of Commerce . Value for March was revised to increase to 407,000 . Economists forecast that monthly sales will grow by 426,000 in April. Compared with a year earlier , sales of new homes fell 4.2% . The average home price remained elevated at $ 275,800 . It is slightly smaller than in March , when it reached the highest level in history.
Negative price dynamics is also called a technical correction and weakening interest in buying . On the eve of the official price of gold on COMEX rose by $ 6.9 and reached a maximum value for the three sessions , providing a small premium for sales.
However, weak investment demand for gold bullion today continues to put pressure on futures prices on COMEX. The assets of the world's largest holder of gold investment institutions ETFs SPDR Gold Trust as of 20 May 2014. remain at the level of 780.19 tonnes - the lowest level since December 2008.
Market participants are also watching the events in Ukraine, where this Sunday should be a presidential election . U.S. and European officials have warned over the weekend that against Russia will be additional sanctions if Moscow disrupt the forthcoming elections in Ukraine.
If you evaluate a technical point of view , it is likely that in the coming days will be a range of quotations of gold capped at $ 1280.0 support and resistance level $ 1305.0 .
The cost of the June gold futures on the COMEX today dropped to $ 1293.80 .
|remaining time till the new event being published|
All posted material is a marketing communication solely for informational purposes and reliance on this may lead to loss. Past performance is not a reliable indicator of future results. Please read our full disclaimer.