Gold Holds Gains As Jan. Sales Of New U.S. Homes Fall 7.8%
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Updating earlier story with more details from report, comment from economist
(Kitco News) - Gold prices held onto earlier gains Monday after news that sales of new U.S.single-family homes fell by 7.8% in January to a seasonally adjusted andannualized pace of 593,000.
Consensusestimates compiled by various news organizations called for sales to be around 648,000to 650,000.
TheCommerce Department revised sales for December up to 643,000 from theoriginally reported 625,000.
As of 10:08 a.m. EST, Comex April gold was up $4.80 to $1,335.10an ounce. The metal had been at $1,335.60 five minutes ahead of the report.
Royce Mendes of CIBC saidthat the drop in sales was probably due to winter weather in parts of the U.S.
“Sharp slowdowns in sales in both the northeast and southernregions drove the overall deceleration,” he said. “Outside of weather-affectedareas, new home sales actually accelerated, suggesting the underlying gentleupward trend in both housing starts and sales remains intact.”
The median sales price ofnew houses sold in January 2018 was $323,000, down from $336,700 in December.The average sales price was $382,700 after 394,600 in December.
The seasonally adjustedestimate of new houses for sale at the end of January was 301,000. Thisrepresents a supply of 6.1 months at the current sales rate, which Mendes saidis the highest number since 2014.
By Allen SykoraFor Kitco News
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