Gold Moves Little After Sales Of New U.S. Homes Rise By 4% In March
Editor's Note: Updating earlier story with more details from report.
(Kitco News) - Goldprices were unfazed Tuesday by news that sales of new U.S. single-family homesrose by 4% in March to a seasonally adjusted and annualized pace of 694,000.
Consensusestimates compiled by various news organizations called for sales to be around630,000. The Commerce Department revised sales for February to 667,000 from theoriginally reported 618,000. The sales rate from March of 2017 was 638,000.
As of 10:12 a.m. EDT, Comex June gold was trading up by $6.30 for the day to $1,330.30 an ounce.Two minutes ahead of mid-morning reports - both stronger than forecast -- onconsumer confidence and the sales of new homes, the metal was at $1,330.10.
Themedian sales price of new houses sold in March was $337,200, while the averagesales price was $369,900, the government said.
Theseasonally adjusted estimate of new houses for sale at the end of March was301,000. This represents a supply of 5.2 months at the current sales rate.
“While the current level is still slightlybelow November's spike, the series seems to be trending higher at a faster pacethan single-family starts currently are, with thelatter disappointing in the most recent month,” said Andrew Grantham ofCIBC. “With months' supply now down to 5.2, we could see starts pick up inbuilding in the months ahead.”
By Allen SykoraFor Kitco News
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