Gold for December delivery was dipping 10 cents to $1,338.80 an ounce at the Comex division of the New York Mercantile Exchange. The gold price Tuesday has traded as high $1,343.80 and as low as $1,328.10.
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was rising 0.9% to $77.77, while the euro was down 0.9% to $1.38 against the dollar. The spot gold price was losing more than $2, according to Kitco's gold index.
At 10 a.m. eastern time, the Federal Housing Finance Agency reported that home prices rose 0.4% from July to August. Economists thought the index would fall 0.2% after a downwardly revised month-over-month 0.7% decline reported in July. For the 12 months to August, prices declined by 2.4%, according to the agency. The U.S. index is 13.6% below its April 2007 peak.
Before the market open, it was reported that the S&P/Case-Shiller 20-city August home price index increased by 1.7% from August 2009, which was below the 2.1% growth predicted by economists, according to
The Conference Board's consumer confidence was also released at 10 a.m. It rose to a better-than-expected level of 50.2 from 48.6 in September. Economists had expecting an October reading of 49, according to
On Monday afternoon, gold prices were popping after the meeting of G20 finance ministers and central bank governors in Korea this weekend conveyed to investors the likelihood that the dollar would come under continuing pressure; and even as existing-home sales were reported to have climbed in September. The dollar reacted with a decline, though the selling has waned since then.
Although the U.S. dollar index was advancing Tuesday morning, FastMarkets analyst James Moore, in a daily newsletter, noted that overall the rising possibility of additional stimulus from the Fed continued to create bearish dollar sentiment, which is supportive of more commodity gains.
In a daily note, EverBank World Markets president Chuck Butler surmised that Tuesday's dollar gain could be attributable to U.S. traders not being pleased with the G20 results on the premises that the FOMC may not carry out as much quantitative easing as the market has expected. "So. why are the U.S. traders thinking this way, when the foreign markets traders and me believe the amount of the QE will be larger than $1 trillion? ... I really don't have an answer for you on why here in the U.S. traders are buying dollars."
Butler urges investors to not be panicked about these "short-term bouts of dollar bias" that have surfaced frequently in the past two years.
On Monday, during a speech at Cornell University, New York Fed president William Dudley conveyed to his audience that while the Fed Reserve can't simply "wave a magic wand" to accelerate the pace of U.S. economic recovery, it is able to help with the recovery through quantitative easing.
were up 28 cents at $23.83, while copper prices were flat at $3.87.
, a risky but profitable way to
, were trading in **mixed** territory Tuesday.
was rising by 5.2% to $7.25, while
was down 0.8% to $46.14.
was up 0.4% to $17.83.
SPDR Gold Trust
was falling 0.2% to $130.64.
-- Written by Andrea Tse in New York.
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