Gold Prices Off Their Lows As New Home Sales Miss Expectations
(Kitco News)- Gold prices are off their lows but remain down on the day following further weaknessin the housing sector as fewer consumers bought new homes last month.
Wednesday,the U.S. Commerce Department said that new home sales dropped 5.5% inSeptember, to a seasonally adjusted annualized rate of 553,000 homes, down fromAugust's downward revised rate of 585,000. According to consensus forecasts,economists were expecting to see a modest drop to 627,000 units.
New home sales are at their lowest level in nearly two years.
Thegold market has seen a modest boost following the weak housing data, but reaction has been muted as traders appear to betaking some profits after the yellow metal hit a three-month high Tuesday.December gold futures last traded at $1,1235 an ounce, down 0.15% on the day.
Manyeconomists have been showing more concern over the health of the housingsector. The new home sales data comes after last week’s disappointing existinghome sales, which declined for the sixth straight month.
Manyeconomists have noted that the housing sector is suffering as mortgage ratesrise because of increasing interest rates.
“Thehousing market seems to falling off a cliff as a result of sluggish wage growth,higher rates, affordability,” said Greg Michalowski, currency strategistat Forexlive.com
By Neils ChristensenFor Kitco News
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