Reuters reported that signs of a strengthening US housing market helped push gold prices below USD 1,300 an ounce despite heightened geopolitical tensions over the situation in Ukraine. US data showed that contracts to buy previously owned homes rose in March for the first time in nine months, a sign the housing market could be stabilizing after suffering a setback from a rise in interest rates and a severe winter. The United States froze assets and imposed visa bans on seven powerful Russians close to President Vladimir Putin and also sanctioned 17 Russian companies in reprisal for Moscow's actions in Ukraine. Last week, signs of escalating violence in Eastern Europe between Ukrainian forces and pro Russian militants sent gold above USD 1,300 an ounce for its third weekly gain in the past four weeks. Mr James Steel chief precious metals analyst at HSBC said that "While the price break over USD 1,300 may be construed as positive for the bullion market, gains that have historically been boosted by bouts of rising geopolitical tensions tend to be fleeting and can be erased just as fast as they materialize." S&P 500 equities index rebounded after trading mostly lower in the afternoon session, dragged by heavy losses at Bank of America Corporation. The second largest US bank said it will suspend a planned increase in dividend and its latest stock buyback program because it miscalculated a measure of the capital on its books. Preliminary Reuters data showed that US gold futures for June delivery settled down USD 1.80 an ounce at USD 1,299, with volume about 30% below its 30 day average.

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