Investing.com - Gold prices shot up in U.S. trading on Monday amid technical demand after investors began to view the commodity as oversold and rebalanced support levels higher than those from recent weeks.
Softer-than-expected housing numbers in the U.S. also pushed up prices.
On the Comex division of the New York Mercantile Exchange, gold futures for June delivery were up 1.94% at USD1,422.65 a troy ounce in U.S. trading on Monday, up from a session low of USD1,403.55 and down from a high of USD1,438.35 a troy ounce.
Gold futures were likely to test support USD1,403.55 a troy ounce, the earlier low, and resistance at USD1,590.05, the high from April 9.
Gold prices have dropped in recent months amid concerns that a more robust recovery in the U.S. will prompt the Federal Reserve to soon wind down stimulus tools, which weaken the dollar to spur investing and recovery.
Gold and the dollar tend to trade inversely from one another.
However, disappointing housing figures released in the U.S. earlier prompted many to assume the Fed won't rush to tighten policy.
The National Association of Realtors reported earlier that U.S. existing home sales fell 0.6% to 4.92 million units in March compared to February's revised total of 4.95 million.
February existing home sales initially came in at 4.98 million units.
Analysts were expecting U.S. existing home sales to rise to 5.01 million units in March.
Gold also rose amid technical buying as investors viewed recent selloffs as excessive and rebalanced their trading strategies on Monday.
Physical demand out of Asian pushed up prices as well.
Elsewhere on the Comex, silver for May delivery was up 1.60% at USD23.328 a troy ounce, while copper for May delivery was down 0.45% and trading at USD3.134 a pound.
Investing.com - Investing.com offers an extensive set of professional tools for the Forex, Commodities, Futures and the Stock Market including real-time data streaming, a comprehensive economic calendar, as well as financial news and technical & fundamental analysis by in-house experts.
Read more News on Investing.com or Follow us on Twitter at @ Newsinvesting
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.