Daily Gold Update

Source:MarketWatch

New York— Gold prices climbed on Tuesday as the dollar declined, hiking demand for bullion as an investment option after data showed housing starts and building permits dropped to record lows in April. The dollar declined versus its currency rivals after reports that Goldman Sachs Group Inc., JPMorgan Chase & Co. and Morgan Stanley moved to repay $45 billion in government rescue money.

Analysts were also disheartened by data showing a decline in U.S. housing starts. "This morning report of a 12.8% decline in housing starts in April versus the prior month continues to suggest the bottom in housing still hasn't been reached," said Fred Dickson, chief market strategist, Davidson Companies.

"Although the credit picture is improving and the job loss rate appears to be showing signs of slowing, housing remains the weak link in the economic picture. We continue to believe that an economic recovery probably won't begin until the fourth quarter at the earliest," said Dickson.

Gold for June delivery ended up $5.00, or 0.5%, at $926.70 on the Comex division of the New York Mercantile Exchange. See Full Story: http://www.marketwatch.com/story/gold-climbs-higher-as-housing-starts-drop