RTTNews - The price of gold fell on Monday as rising stocks reduced the need to invest in the precious metal as a safety alternative. With the slide, gold gave back some of the gains it saw over the past two weeks in inflation concerns.
Gold for June delivery settled at $921.70, down $9.60 for the session. The metal had dropped to $919.00 earlier in intraday trading.
Traders considered an encouraging housing report released in the afternoon. The National Association of Home Builders said its index of sentiment rose in May to a level of 16. This was up from the mark of 14 recorded for April and represented its highest reading since last September.
Gold's losses were somewhat limited as the dollar saw weakness against both the euro and sterling, giving back some of its overnight gains. Gold usually moves opposite the dollar because of it's hedge value.
More data is on the slate later in the week. On Tuesday, housing starts and building permits data will be made public. On Wednesday afternoon, the minutes of the Federal Open Market Committee's latest meeting will be revealed. On Thursday, data on initial jobless claims, leading indicators and the Philly Fed Index will be announced.
On Friday, gold closed at $931.30 per ounce, up $2.90 on the session. Gold finished the week up $16.40 and gained $43.70 over the last two weeks.
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