Gold Ends Lower as Dollar Strengthens

(Reuters) - Gold futures on the COMEX division of the New York Mercantile Exchange closed lower on Wednesday as the dollar strengthened. Gold prices also pressured by surging sales of new homes in the U.S. last month to the highest level in more than five years.

The most active gold contract for August delivery fell 15 U.S. dollars, or 1.12 percent, to settle at 1319.7 dollars per ounce. Tracking the most active contract, marking a decrease in the percentage loss and the biggest dollar since July 5, according to FactSet.


Market analysts believe gold fell as sales of new U.S. homes rose in June to the highest level of five years, a sign of improved economic growth that could push the U.S. Federal Reserve to slow its financial stimulus measures, which suppress precious metals.

Statistics released by the U.S. Commerce Department showed that new home sales in the U.S. surged in June to an annual rate of 497,000, the highest since May 2008.Analysts believe that any new economic data could add to speculation over the timing for stimulus reduction.

In addition, the increase in the U.S. dollar also weighed on dollar-denominated gold.

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