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Gold Rebounds Above $1,650

3/21/2012 7:06 AM ET

The price of gold was moving higher Wednesday morning as the US dollar was ticking lower ahead of a key housing report.

Gold for April delivery, the most actively traded contract, added $6.50 to $1,653.50 an ounce. Yesterday, gold shed $20 to settle at a weekly-low mostly on demand concerns with indications of slowdown in Chinese economic growth, while the dollar held steady against a basket of major currencies

Holdings of SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, moved down to 1,290.25 tons from 1,293.27 tons.

This morning, the U.S. dollar slipped back to a 2-week low versus the euro and trading flat against sterling. The buck was steady near its 1-year peak versus the yen and edging down against the Swiss franc.

In economic news, the Bank of England retained its quantitative easing unchanged at GBP 325 billion through a split vote as two members preferred a GBP 25 billion increase in the programme, the minutes of the meeting showed. All members voted to retain a record low 0.5 percent interest rate. The meeting was held on March 7 and 8.

The price of silver moved higher, while platinum was ticking lower in morning deals.

From the U.S., the National Association of Realtors will release its report on existing home sales for February at 10 a.m. ET. Economists estimate existing home sales of 4.61 million for the month compared to a 4.3 percent increase in the previous month to a seasonally adjusted annual rate of 4.57 million units in January.

by RTT Staff Writer

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