Gold Holds Gains After U.S. Existing-Homes Sales Fall 0.7% In July
Editor's Note: Updating earlier story with more details from report.
(Kitco News) -Gold prices hung onto earlier gains after sales of previously owned U.S. homes fellby 0.7% in July to a seasonally adjustedand annualized pace of 5.34 million, according to a report Wednesday from theNational Association of Realtors.
Around 10:03 a.m. EDT, Comex December gold was up $3.60 at $1,203.70 an ounce. Fiveminutes before the report, the contract was trading at $1,204.10.
The report was the fourth straight decline in sales andslowest pace in two years, according to NAR. The western part of the U.S. wasthe only region with an increase in sales.
Consensusexpectations compiled by various news organizations called for nationwide salesto be around 5.4 million to 5.42 million.
Salesare now 1.5% below a year ago, NAR said. The report includes sales ofsingle-family homes, townhomes, condominiums and co-ops.
LawrenceYun, NAR’s chief economist, said the continuous gains in home prices have nowsteadily reduced demand.
“Ledby a notable decrease in closings in the Northeast, existing-home sales trailedoff again last month, sliding to their slowest pace since February 2016 at 5.21million,” he said. “Too many would-be buyers are either being priced out, orare deciding to postpone their search until more homes in their price rangecome onto the market.”
Themedian existing-home price for all housing types in July was $269,600, up4.5% from July 2017. July’s price increase marks the 77th straight month ofyear-over-year gains, NAR said.
By Allen SykoraFor Kitco News
Follow @AllenSykora
asykora@kitco.com Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.