Gold drops ahead of housing numbers, Fed

Los Angeles (June 17)  Gold prices sprang a leak on Tuesday, giving back a chunk of recent gains ahead of some key housing numbers and the start of the two-day Fed meeting.

At last check, gold for August delivery  GCQ4 -0.79%    dropped $10.10, or 0.8%, to $1,265.20 an ounce. July silver  SIN4 -0.74%    gave up 14 cents, or 0.7%, to $19.57 an ounce.

Jim Wyckoff of Kitco News chalks up the weakness to profit-taking.

 
“Gold market bears still have the slight overall near-term technical advantage. However, the bulls are making a move,” he said. “The gold bulls’ next upside near-term price breakout objective is to produce a close above solid technical resistance at $1,300.”

A day earlier, gold managed to eke out a slight gain as upbeat economic data dented some of the advances caused by the escalating violence in Iraq. The U.S. is reportedly considering drone strikes and a potential powwow with Iran over the crisis.

Elsewhere in metals trading, July platinum  PLN4 -0.48%    dipped $6.10, or 0.4%, to $1,433.00 an ounce, while September palladium  PAU4 -0.13%    added $1.65, or 0.2%, to $811.00 an ounce. High-grade copper for July delivery  HGN4 +0.21%    added 1 cent to $3.06 a pound.

Source: MarketWatch