Gold Ends At Near 3 1/2-Month High On Strong Dollar, Upbeat Data

(RTTNews) - Gold futures ended sharply lower on Tuesday, tracking generally rising global equity markets with investors opting for the riskier equity assets on some better than expected economic data from the U.S., as well as on developments in Ukraine and a strengthening dollar. Gold futures closed at its lowest since February 7.

In some upbeat economic news, consumer confidence in the U.S. improved in line with estimates in May, a Conference Board report showed Tuesday, while new orders for U.S. manufactured durable goods unexpectedly saw continued growth in April, with orders rising for the third consecutive month.

Meanwhile, home prices in major U.S. metropolitan areas rose more than expected in March, a report from Standard & Poor's showed Tuesday.

Gold for June delivery, the most actively traded contract, plunged $26.20 or 2.0 percent to close at $1,265.50 an ounce on the Comex division of the New York Mercantile Exchange on Tuesday.

Gold for June delivery scaled an intraday high of $1,294.80 and a low of $1,264.30 an ounce.

Holdings of SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, remained unchanged at 776.89 tons on Tuesday from its previous close.

The dollar index, which tracks the U.S. unit against six major currencies, traded at 80.46 on Tuesday, up from its previous close of 80.29 in North American trade. The dollar scaled a high of 80.47 intraday and a low of 80.17.

The euro traded lower against the dollar at $1.3618 on Tuesday, as compared to its previous close of $1.3646 in North America. The euro scaled a high of $1.3646 intraday and a low of $1.3614.

In economic news, the data from the U.S. Commerce Department showed durable goods orders rose 0.8 percent in April, from an upwardly revised 3.6 percent rise in March, boosted by a notable increase in demand for military hardware. Excluding defense, new orders fell 0.8% in April. Excluding an increase in orders for transportation equipment, durable goods orders edged up by a modest 0.1 percent in April.

A report from Standard & Poor's showed home prices in major U.S. metropolitan areas rose by a more than expected 1.2 percent in March, following a 0.8 percent increase in February. Economists expected the index to rise by about 0.7 percent. On a non-seasonally adjusted basis, the index climbed 0.9 percent in March after coming in unchanged in the previous month.

A report from the Conference Board said U.S. consumer confidence improved in line with estimates, rising to 83.0 in May, from a downwardly revised 81.7 in April. Economists had been expecting the index to edge up to 83.0 from the 82.3 originally reported for the previous month.