Gold Drops Ahead Of Housing Numbers, Fed

Gold prices sprang a leak on Tuesday, giving back a chunk of recent gains ahead of some key housing numbers and the start of the two-day Fed meeting.

At last check, gold for August delivery  dropped $10.10, or 0.8%, to $1,265.20 an ounce. July silver  gave up 14 cents, or 0.7%, to $19.57 an ounce.

Jim Wyckoff of Kitco News chalks up the weakness to profit-taking.

“Gold market bears still have the slight overall near-term technical advantage. However, the bulls are making a move,” he said. “The gold bulls’ next upside near-term price breakout objective is to produce a close above solid technical resistance at $1,300.”

A day earlier, gold managed to eke out a slight gain as upbeat economic data dented some of the advances caused by the escalating violence in Iraq. The U.S. is reportedly considering drone strikes and a potential powwow with Iran over the crisis.

Elsewhere in metals trading, July platinum  dipped $6.10, or 0.4%, to $1,433.00 an ounce, while September palladium  added $1.65, or 0.2%, to $811.00 an ounce. High-grade copper for July delivery  added 1 cent to $3.06 a pound.

Source : Marketwatch