Gold prices moved into positive territory on Wednesday and snapped a three-session losing streak. Traders were attracted to the precious metal's hedge appeal with the dollar lingering close to near-term lows against other majors.
April gold finished the session at $935.80, up $12 for the session. Prices touched as high as $942.40 earlier in the day.
The greenback remained near recently-seen lows against other majors. The dollar gave back its early gains versus the euro by mid-day, easing back to 1.3612, compared to a 10-week low of 1.3735 from earlier in the week. The dollar improved to 1.4520, up from a monthly low of 1.4777, set earlier this week.
In economic news, the Commerce Department released a report showing new home sales rose 4.7 percent to an annual rate of 337,000 in February from an upwardly revised January rate of 322,000. The results surprised economists, who had been expecting sales to fall to 300,000 from the 309,000 originally reported for the previous month.
Additionally, industry data released earlier showed that mortgage application volume rose over 32 percent last week, as low mortgage rates on the heels of the Fed's decision to buy Treasury securities encouraged both the purchase and refinancing of mortgages.
Earlier in the day, the Commerce Department released a report revealing durable goods orders jumped 3.4 percent in February after falling by a revised 7.3 percent in January. Economists had been expecting durable goods orders to fall by 2.5 percent compared to the 4.5 percent decrease that had been reported for the previous month.
Traders awaited the release of fourth-quarter GDP data tomorrow morning. A decline of 6.6% for the fourth quarter is predicted, compared to a 6.2% fall in the previous quarter.
Gold closed Tuesday lower for the sixth time in seven sessions. The one gain, however, was the $68.70 surge on Thursday amid worries of inflation after the Federal Reserve's plan to buy as much as $1.15 trillion in bonds was revealed the day before.
For comments and feedback: contact email@example.com