Gold declined on Tuesday amid a retreat of safe-haven bids after oil stabilized and equities rose, while uncertainty over Fed's monetary policy also weighed. New York Fed President William Dudley said US economic environment is "mostly favourable", but the US central bank remains cautious in hiking interest rates as threats loom. At the same time, Boston Fed President Eric Rosengren said the US central bank is set to raise interest rates more quickly than investors currently expect.
UK house prices rose to a record in April as a strong labour market and ultra-low interest rates continue to support house price growth in Britain. Average asking prices rose 1.3% from March to 307,033 pounds, according to the Rightmove property portal. On an annual basis, prices were 7.3% higher. The data revealed that the price change in April was driven upward mainly by larger and more expensive properties, while the price of smaller properties purchased by first-time buyers experienced a monthly decline of 1.4%. Mortgage provider Halifax reported earlier this month that house prices had accelerated in the three months to March, rising 10.1% above the level seen during the same quarter last year. Prices also grew when measured on a monthly basis, by 2.6%, bouncing back from a decline of 1.5% a month before, Halifax said. Despite this surge in the first quarter, Halifax warned housing market activity should slow in the second half of this year. The number of mortgage approvals growth slowed only slightly to 73,871 in February, down from 74,085 a month before, but remained close to January's two-year high, according to the Bank of England.
Canada's factory sales declined far more than expected in February amid a sharp decrease in shipments of motor vehicles and petroleum and coal products. The value of factory sales dropped 3.3% to 51.19 billion Canadian dollars in February from January, according to Statistics Canada. The fall reversed some of the gains over the previous three months and appeared to be steeper than the 1.5% drop economists had expected. Sales slipped in 16 of the 21 industries Statistics Canada tracks, accounting for nearly three-quarters of the manufacturing sector. Motor-vehicle sales plunged 10.5%, the first decline after four consecutive months of increases. Excluding auto-sector sales, manufacturing shipments declined 2.2% in the month. In volume terms, February factory sales decreased 2.0% compared with the previous month. The sharper-than-expected decrease could spark concerns for economists who have been calling for the non-resource side of the economy, including manufacturing, to lead Canada's economic growth in light of falling global commodity prices. Separately, Canadian home prices and sales rose in March, showing the country's housing market boom still had momentum. The housing market, a pillar of economic strength in the years since the financial crisis, was more positive, with existing-home sales up 1.5% in March.
Upcoming fundamentals: Central bank governors to speak on Tuesday
Gold erases gains, puts 55-day SMA at new risk
Monday's intraday rally was extending through the weekly and monthly pivot points at 1,239/41. However, by the end of US session the bears managed to retake the lead and sent the bullion into red. Now the near-term cap is established at those pivots, which is set to renew attempts of testing the 55-day SMA, currently at 1,229.27. A slide below here is going to change the market focus and the bears will begin targeting the 1,201/1,198 zone guarded by the weekly S2 and monthly S1. Meanwhile, daily technicals suspect XAU/USD may have a chance to commence a revival.Market sentiment grows further
Spreads (avg,pip) / Trading volume / Volatility
Market participants foresee the price of gold at 1,275 by the end of July
Traders who were asked regarding their longer-term views on gold between March 19 and April 19 expect, on average, to see the metal around 1,275 by the end of July. Generally, 65% of participants believe the price will be above 1,250 in ninety days. Alongside, 22% of those surveyed reckon the price will trade in the range between 1,100 and 1,250 over the next three months.