Gold: an overview of the market situation

After yesterday's aggressive sell-gold began to return loss and went into positive territory for the first time in two days. Despite the fact that until full payment of yesterday's losses still far away, at auction in the U.S. spot gold prices fluctuate at a level of $ 1,387. Now the prices are still faced with obstacles and resistance testing $ 1,400 is unlikely to significantly strengthen the metal or the stability of prices will, at least in the short term.

Investor sentiment is supported by statistical data and the U.S.. Industrial production in March, adjusted for seasonal variations increased by 0.4% compared with February. Capacity utilization rose to 78.5% from 78.3%. The cold snap in the U.S. has led to a sharp increase in production in the communal area in March, which contributed to the increase in industrial production as a whole, despite the decline in the manufacturing industry. The data were better than expected. Economists had expected industrial production to grow by 0.3% and capacity utilization was 78.4%.

Construction of homes rose last month to the highest level since the pre-crisis times, that was a sign that the housing market recovery will continue to support economic growth. The total number of housing starts in March rose by 7.0% and adjusted for seasonal variation was 1.04 million homes. The reason for this increase was a jump in construction of multi-family homes, which is a volatile component of the industry. Construction of houses for at least five families increased by about 27%, and construction of single-family homes fell by 4.8% compared to the previous month. General index was the strongest since June 2008.

The cost of the June gold futures on COMEX today rose to 1404.02 dollars per ounce.