Precious Metals Preview: Gold Crashes Well Under $1300 Mark

A strong wave of US economic data releases hurt Gold sharply yesterday. The metal slipped under the key $ 1300 per ounce levels to test a fresh five month low mark. US homebuilder confidence improved in the month of May, according to a report released by the National Association of Home Builders on Tuesday. The report said the NAHB/Wells Fargo Housing Market Index rose to 70 in May from a downwardly revised 68 in April. Retail sales in the US increased. The Commerce Department said retail sales edged up by 0.3% in April after climbing by an upwardly revised 0.8% in March. The New York Fed said its general business conditions index spiked to 20.1 in May from 15.8 in April, with a positive reading indicating growth in regional manufacturing activity. Meanwhile, weak Asian equities are offering some support to the metal today. US stocks tumbled amid heavy profit selling after recent surge. The modest gains posted on Monday had lifted the major averages to their best closing levels in two months. Gold is currently trading at $ 1293 per ounce- up 0.22% on the day. MCX Gold futures ended at Rs 31175 per 10 grams, down 1%.