Gold is trading at 1386.05 gaining 6.35 in the Asian session. This is the usual course of action, gains in the morning to give these back in the European session. Gold futures declined by 1% in the international market as equities market rallied, driven by encouraging US home sales and consumer confidence data which reduced bullion’s safe haven appeal.

Gold holdings of SPDR gold trust, the largest ETF backed by the precious metal, declined to 1,012.25 tons, as on May 28. As long as hedge fund managers and money managers remain out of the markets and the ETF’s continue to decline their holding there is little help for gold to return to and uptrend. Gold’s only support seems to be traders betting on the FOMC decisions at their June meeting.

The US Doller outperformed most of its peers on Tuesday, as data showed Americans are the most confident about economic prospects in past 5-years. Ongoing positive eco data, the more likely that the Fed might begin tapering its asset purchases in the near term.

Silver recovered in early trading to 22.29 supported by the climb in gold, but more so on the strength of the US economy and the hopes for increase demand for industrial metals. Copper climbed with other base metals, after strong US housing and consumer confidence data lifted prospects for rising demand in the world’s biggest economy although gains were capped by a stronger dollar and concerns over Chinese growth. This morning the IMF downgraded its outlook for China, lowering its growth for 2013 from 8% to 7.7% based on global demand for Chinese exports. Copper is trading at 3.304.

Crude oil prices traded positively supported by worries that the escalating war in Syria might spark more strife in the Middle East, which accounts for almost a fifth of the world’s seaborne crude oil supplies while positive data’s from US added further support. Crude oil is trading at 94.81 this morning after closing above the 95 price level. Traders will wait for inventory data from the EIA which was delayed a day due to the Memorial Day holiday in the US.  US data today, includes mortgage applications and the Fed’s Redbook. Crude oil traders will be closely watching for the API releases. The API is expecting a decrease in crude stocks by 1.2million barrels.

Natural Gas gave back close to 8 cents over the past day to trade at 4.22 after its break above 4.30 triggers many sell orders. Natural gas futures dropped for the third session in a row, as forecasts for below-normal Mid-west temperatures early next month signaled reduced demand for electricity to power air conditioners.