2014.02.2706:22:51UTC+00Gold holds plunge from 17-week peak

Gold held drop from the highest peak in 17 weeks as US housing data that exceeded estimates supported anticipations the Federal Reserve will retain its plan to cut down stimulus.

Bullion to be delivered immediately traded at $1,328.70 per ounce at 8:52 a.m. in Singapore, previously $1,330.57, when the metal touched $1,345.46, the highest since October 30. Prices wiped out gains to finish 0.8% lower, following a report reflected new home sales in the US unexpectedly escalated to a five-year high.

Gold is going for a second month of profits, the longest stretch since August, as worries the US recovery may be wavering and unrest in emerging markets hyped demand for a store of value. Bullion gained 10% this year, retreating from the largest annual decline in more than three decades, even as the Fed announced a decrease to asset purchases at each of its last two meetings.

SPDR Gold Trust assets, the largest bullion-backed exchange-traded product, were still the same yesterday after profiting for three days, and are aiming for the first monthly expansion since December 2012 on haven demand.