Daily Gold Update

Source:Marketwatch

New York— Gold futures fell Monday, briefly dropping below $920 an ounce as U.S. stocks extended gains following an upbeat reading on the housing market, reducing gold's investment appeal as a safe asset. Gold for June delivery gave up $9.60, or 1%, to end at $921.70 an ounce on the Comex division of the New York Mercantile Exchange. The contract, which ended last week's trading up 1.8%, had dropped to an intraday low of $919 during the session. Encouraged by low interest rates and by first-time buyers stepping back into the market, U.S. home builders' spirits improved again in May, the National Association of Home Builders said. The group's sentiment index recovered to the highest level since the collapse of Lehman Brothers last September.

Also contributing to perceptions about a prospective upturn in housing, Lowe's Cos. reported a first-quarter profit that dropped a smaller-than-expected 22% as shares of the home-improvement retailer traded higher. In currency trading, the dollar rose against the Japanese yen but fell against the euro to start the trading week. A stronger dollar tends to put downward pressure on dollar-denominated gold prices. See full story.