Wall Street rose as investors eyed a two-day Federal Reserve meeting that finishes on Wednesday amid reports showing declines in both US housing starts and building permits, while consumer prices climbed the most in more than a year.
The Fed is widely expected to cut its bond-buying program by US$10 billion for a fifth straight month, lowering it to US$35 billion.
Indeed, the US real estate industry, an area of concern including for Fed Chair Janet Yellen, showed further signs of weakness. Housing starts dropped 6.5 per cent to a seasonally adjusted annual pace of 1 million units, while permits to build homes weakened 6.4 per cent to a pace of 991,000 units.
Separately, the consumer price index increased 0.4 per cent in May, the biggest gain since February 2013. That weighed on gold prices.
"I think there was an expectation in the gold market that at some point in spring or early summer, the Fed would have slowed their monetary tapering," Adrian Day, chief executive at the Annapolis, Maryland-based Adrian Day Asset Management, told Reuters.