The gold market showed the ability to hold its initial gains in the face of a better than expected US Durable goods report. However, in the wake of a slightly better than expected US New Home sales reading, the gold market gave ground and was clearly disappointed by the second set of US economic readings. While a "not as bad as expected" new home sales reading and an upward revision in the prior months headline reading serves to reduce the flight to quality threat in the market, the outlook for the US economy wasn't definitively improved by the data this morning. However, the US stock market bounced in the face of the US data and oil prices were weaker and that also suggests that flight to quality psychology was being tempered.