Gold Drops Most in Four Weeks on U.S. Home Sales, Dollar Rally

Gold futures posted the biggest drop in almost four weeks after an increase in new-home sales in the U.S. to a five-year high bolstered optimism in the economy, crimping demand for the metal as an alternative investment.

The dollar headed for the biggest gain in three weeks against a basket of 10 currencies. New-home purchases rose 9.6 percent to a 468,000 annualized pace, topping all estimates of economists surveyed by Bloomberg, Commerce Department data showed today. Earlier, gold reached a 17-week high.