Gold drops on US home sales gains

Gold futures on the COMEX division of the New York Mercantile Exchange dropped Tuesday on rising U.S. home sales in June.

The most active gold contract for August delivery lost 7.6 U.S. dollars, or 0.58 percent, to settle at 1,306.3 dollars per ounce.

The U.S. existing home sales, which tally completed transactions for single-family houses, townhouses and condominiums, increased 2.6 percent from May to a seasonally adjusted annual rate of 5.04 million in June, the National Association of Realtors (NAR) said in a report.

The decent earnings season suggested by the data dampened safe- haven demand that had emerged on the geopolitical tensions in Ukraine and the Gaza Strip, said analysts.

U.S. Consumer Price Index (CPI) rose moderately in June, led by strong increase of gasoline prices. The CPI increased 0.3 percent on a seasonally adjusted basis last month, after an increase of 0. 4 percent in May, the U.S. Labor Department said.

Silver for September delivery dropped 0.4 cents, or 0.02 percent, to close at 21.008 dollars per ounce. Platinum for October delivery dropped 5.1 dollars, or 0.34 percent, to close at 1, 488.3 dollars per ounce.