Gold Holding Steady As New Home Sales Rise 3.5% In August, July Data Revised Lower
(Kitco News)- Thegold market remains under pressure but holding around $1,200 an ounce a U.S.consumers buy new homes at a pace relatively in line with expectations.
Wednesday,the U.S. Commerce Department said that new home sales rose 3.5% in August,to a seasonally adjusted annualized rate of 629,000 homes. The rise the resultof significant downward revisiond in July's data with home sales falling to a rateof 608,000 homes. According to consensus forecasts, economists wereexpecting to see a modest drop to 630,000 units.
Thegold market is seeing little reaction to economic data as traders are keeping alow profile ahead of the Federal Reserve's monetary policy decision to come outlater in the day. December gold futures last traded at $1,199.7 an ounce, down0.42% on the day.
Adam Button, currency strategist at Forexlive.com, said that the data shows that the housing sector remains a sore spot for the U.S. economy.He added that higher interest rates will continue to drag down the sector.
Looking home prices, the report said that the median sales price of new houses sold in August 2018 was $320,200; the average sales pricewas $388,400.
Meanwhile, the supply of houses for sale stood at 318,000homes, representing a 6.1-month supply.
By Neils ChristensenFor Kitco News
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