Gold Tops $1,400 After Housing Slump Spurs Stimulus Bets

Bloomberg (24/8) - Gold jumped to a 11-week high, topping $1,400 an ounce in spot trading, as sales of new U.S. homes fell more than forecast, boosting speculation that the Federal Reserve will maintain economic stimulus. Sales of newly built homes in July plunged more than 13 percent, the most in more than three years, government data showed today. The 394,000 annualized pace compared with a drop to 487,000 forecast by analysts in a Bloomberg survey. Fed policy makers said they are “broadly comfortable” in scaling back debt purchase if the economy strengthens. Gold for immediate delivery rose 1.5 percent to $1,396.30 at 3:55 p.m. New York time. Earlier, the price reached $1,400.38, the highest since June 7. On the Comex in New York, gold futures for December delivery reached $1,399.90 after settling at $1,395.80, up 1.8 percent. http://www.bloomberg.com/news/2013-08-23/gold-jumps-to-11-week-high-as-housing-spurs-stimulus-bets.html