Gold fell sharply

Gold prices have dropped significantly in the past few hours after rising earlier in the session. The fall in prices is partly due to the release of data on the US housing market, which disappointed the markets.

Sales of existing homes in November fell to a six-month low. This is a sign that the housing market continues to lag, despite the surge in employment and accelerate economic growth.

As reported on Monday the National Association of Realtors, sales of existing homes fell in November by 6.1% compared to the previous month and adjusted for seasonal variations totaled 4.93 million homes a year. This is the lowest level since May.

According to revised data, in October sales rose to 5.25 million homes a year. This is slightly lower than the initial value of 5.26 million homes for a year, but, nevertheless, it is the highest level this year.

Economists had expected sales in November reached 5.21 million homes a year. Compared to the same period of the previous year, sales in November increased by 2.1%.

This week, the reduction due to the Christmas holidays, analysts predict trading in a narrow range.

"It is unlikely that investors will enter the market at this time of year, but liquidity is so small that if you need to perform any orders, the impact will be significant. My prediction for 2015 is very pessimistic ... If investors are willing to take risks, and at the same while rising interest rates and the dollar, gold will not be able to grow, "- said ABN Amro analyst Georgette Bёle.

In China, gold in early trading on the proposed $ 3 more per ounce spot price in London, and later the margin was reduced to $ 1.

On Tuesday, the market expects the US several economic reports, including the GDP of the third quarter.

The cost of the February gold futures on the COMEX today fell to 1186.60 dollars per ounce.