CHICAGO, June 26 (Xinhua) -- Gold futures on the COMEX division of the New York Mercantile Exchange fell moderately Tuesday, as an improvement in U.S. home prices took away some safe haven flows and traders anxiously awaited the upcoming EU Summit.
The most active gold contract for August fell 13.5 U.S. dollars, or 0.85 percent, to settle at 1,574.9 dollars per ounce.
Gold gave back more than half of its Monday gains Tuesday, as traders regarded the upcoming European Union Summit with more hesitation than in the previous session.
On Monday, investors had perceived the Thursday EU Summit as incapable of making substantial progress in the eurozone crisis, and flocked to gold as a safe haven.
On Tuesday, however, traders scaled back and seemed to regard the Summit with more uncertainty, and sold off some gold in order to position themselves better going into midweek.
Also taking away some of gold's safe haven appeal Tuesday was U. S. data showing an improvement in the U.S. housing market.
The S&P/Case Shiller housing index, a carefully watched survey of U.S. home prices, rose 1.3 percent in April. U.S. housing prices still remain below pre-crisis levels, but improved over the year-on-year decline to 1.9 percent, compared with 2.6 percent recorded last April.
Progress in the housing market could take away some momentum for the U.S. Federal Reserve Bank to stimulate the economy through quantitative easing policies, and consequently deprive gold of a key support factor.
Silver for July delivery lost 48.2 cents, or 1.75 percent, to close at 27.038 dollars per ounce.
