On Tuesday gold prices remained weaker, after data showed that the number of building permits issued in the U.S. surged in May, while housing starts dropped, giving a mixed impression of the U.S. housing sector.
Demand for shelter is limiting selling pressure in gold early this week. However, the solidly bearish near-term technical postures for gold and silver keep the path of least resistance for prices sideways to lower, Kitco News says.
Early in the U.S., August Comex gold was down $3.60 at $1,182.20 an ounce.
July Comex silver was last down $0.118 at $15.965 an ounce.
The U.S. Commerce Department said on Tuesday that the amount of building permits issued in May rose by 11.8% to 1.275 million units from April’s total of 1.140 million. Economists had expected building permits to fall by 3.5% to 1.100 million units in May.
The report also signaled that U.S. housing starts dropped by 11.1% in May to hit 1.036 million units from April’s total of 1.165 million units, worse than expectations for a decline of 3.1% to 1.100 million.
European stock markets were pressured today, mostly due to the Greece-EU debt negotiations that broke down Sunday. Greece's Finance Minister Yanis Varoufakis said earlier that he will not present any new proposals for creditors at the meeting of the eurozone finance ministers due on Thursday.
Markets in Europe were also weaker after ZEW report which showed that in May its index of German economic sentiment dropped by 10.4 points to 31.5 from May’s reading of 41.9 while economists had expected the index to drop by 4.8 points to 37.1 in June.
Investors will now await U.S. economic data due later in the day which will include the weekly Johnson Redbook and Goldman Sachs retail sales reports, new residential construction, and the FOMC meeting begins.