Gold swung between gains and losses after climbing to the highest level since June as investors weighed the outlook for stimulus in the U.S., with a slump in new-home sales boosting the case for sustained debt-buying.
Gold for December delivery rose as much as 0.8 percent to $1,407 an ounce on the Comex, the highest since June 7 and it fell as much as 0.4 percent, before trading down 0.1 percent at $1,394.20 by 8:16 a.m in New York. Bullion for immediate delivery rose as much as 0.7 percent to $1,407.18 an ounce, also the highest since June 7, before dropping to $1,394.40 in London.
U.S. new-home sales fell more than 13 percent in July, data showed Aug. 23, sending gold above $1,400 on speculation the Federal Reserve’s $85 billion a month of asset purchases may be sustained for longer. Minutes released on Aug. 21 showed policy makers were comfortable with Chairman Ben S. Bernanke’s plan to taper this year if the economy strengthens. Bullion holdings in the SPDR Gold Trust expanded on Aug. 23 by the most in a year.
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