Gold keeps dropping on upbeat economic data

Gold futures on the COMEX division of the New York Mercantile Exchange Tuesday closed at the lowest level since April 1 under the influence of upbeat economic data.

The most active gold contract for June delivery fell 7.4 dollars, or 0.57 percent, to settle at 1,281.1 dollars per ounce.

U.S. Federal Housing Finance Agency reported Tuesday that home prices in U.S. rose a seasonally adjusted 0.6 percent in February, and were up 6.9 percent from the same period last year.

The National Association of Realtors said though sales of existing homes dropped 0.2 percent in March to a seasonally adjusted annual rate of 4.59 million, low inventory boosted the median sales price of used homes to hit 198,500 dollars in March, up 7.9 percent year on year.

Furthermore, Richmond Fed's manufacturing index has come back into positive territory in April, rising to 7 from negative 7 in March.

U.S. equities rose Tuesday on positive economic data, which in turn dampened gold.

Gold holdings of SPDR Gold Trust, the world's largest gold- backed ETF, declined to 792.14 tonnes Monday from 795.14 tonnes last Thursday and from 806.82 tonnes last Tuesday.

Market analysts believed that a break in gold below the current level may trigger a fast downward trend, with the next landing point around 1,240 dollars.

Silver for May delivery rose one cent, or 0.05 percent, to close at 19.361 dollars per ounce. Platinum for July delivery lost 0.4 dollars, or 0.03 percent, to close at 1,400.3 dollars per ounce.