Gold News & Info

Source: Marketwatch

New York— Gold futures settled at a three-month low Tuesday, routed as they slid below a key support level early in the trading session and a wave of selling ensued. Gold for August delivery lost $25.10, or 2.1%, to $1,158 an ounce on the New York Mercantile Exchange. It was gold's lowest level since April 26 and its biggest one-day decline since July 1. It also marks a decrease of 8% from gold's record high of $1,258.30 set June 18. Gold started out the session in the black, supported by a softer U.S. dollar. But selling momentum took over the gold market as the U.S. currency found firmer footing and two largely negative macroeconomic reports failed to spark safe-haven buying.

Home prices rose for a second month in May, the Case-Shiller index showed, but this doesn't indicate a sustained recovery in the housing market, the index preparers said. Consumer confidence fell in July on concerns about jobs and business conditions. See more on the Conference Board's latest confidence survey. See more on the S&P/Case-Shiller data on home prices in 20 U.S. metropolitan areas. The reports failed to spur safety buying because investors were zeroing in on gold's technical position rather than macroeconomics, said Bill O'Neill, a principal at Logic Advisors in New Jersey. As gold broke below $1,175 an ounce, it triggered sell-stop orders — automatic selling once prices hit a level previously determined by investors — that intensified the fall, O'Neill said. See full story.