The price of gold moved higher on Monday and topped the $900 an ounce mark again. The metal's hedge appeal was boosted by a weaker dollar as traders turned to higher-yielding currencies
June-dated gold ended at $902.20 per ounce, a gain of $14 for the session. With the rally, gold pared a good portion of last week's notable losses.
The dollar dropped to a monthly low against the euro as risk appetite increased for the higher-yielding European currency. The dollar also slipped towards a multi-month low against the sterling and also dropped versus the yen and loonie. Gold usually moves opposite the dollar as traders tend to turn to the precious metal as a safety alternate in times of a weak greenback.
On the economic front, a National Association of Realtors report showed that pending home sales index rose 3.2 percent in March following a downwardly revised 2.0 percent increase in February. Economists had expected the index to come in unchanged following the 2.1 percent increase originally reported for the previous month.
Meanwhile, the U.S. Commerce Department said that the amount of spending on new construction projects rose 0.3 percent in March compared to the previous month, climbing to a seasonally-adjusted annual rate of $969.7 billion.
Traders also awaited the results of the government's stress tests of the 19 largest U.S. banks as well as the release of the Labor Department's monthly employment report.
Friday, gold futures fell to $888.20 per ounce, a drop of $3 on the session. The metal closed last week down $25.90 per ounce.
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