Gold dipped 0.4% yesterday from its 17 week high after the release of positive housing data from the U.S. fuelled speculation that the Fed will continue with its plan to taper quantitative easing.

Gold dropped as investors took profits following the news that U.S. home sales reached a 5 year high.

Gold is on course for its second straight month of gains as investors remain concerned with turmoil in the emerging markets and data suggesting the U.S economy is slowing.

The world’s largest ETF SPDR Gold Trust remained unchanged yesterday following three positive days.