Gold slips to $1056 on US data

Gold prices at COMEX slipped on Friday, as positive economic data released by the National Association of Realtors in the U.S. reversed earlier losses from the green back, providing a setback on the yellow-metal.

The December delivery on gold futures at COMEX settled at $1056.4 per ounce lower by $2.2, but hit an intraday high of $1068.8 which apparently was more than its previous session.

The US dollar steeped to certain levels, as survey of U.S. Existing Home Sales showed a staggering increase of 498,000 to 5.57 M from its previous levels of 5.07 M. In other developments, the Russian government has proposed to sell about 20-50 tons of gold from its reserves in order to plug its budgetary deficit.

Turkey on the other hand has decreased its imports to more than 50% as bullion prices rise high along with the steep sales in scrap gold. These might cap gains on the precious metal for short-term.

The effect on gold due to buildup in US dollar would be temporary as gold is still being considered as a safe haven among inflation wary investors.

Courtesy: JRG Wealth Management

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