Gold Prices Holding Gains As New U.S. Home Sales Fall 5.3% In June
(Kitco News)- Thegold market continues to hold on to modest gains below critical resistance, butis seeing little benefit from slowing momentum in the U.S. housing sector asfew consumers bought new homes last month.
Wednesday,the U.S. Commerce Department said that new home sales fell 5.3% in June,to a seasonally adjusted annualized rate of 631,000 homes. According toconsensus forecasts, economists were expecting to see a modest drop to 669,000units. May's data was also revised lower to a rate of 666,000 homes, down fromthe initial report of 689,000.
Accordingto many economists rising mortgage rates as a result of increasing interestrates are pricing some consumers, especially first time home buyers out themarket, leading to slower demand.
Thegold market is seeing little reaction to economic data, but is attracting somebargain hunters as prices have bounced modestly off last week's 12-month low.August gold futures last traded at $1,231.50 an ounce, up 0.49% on the day.
Despite the monthly decline, the report noted that new homesales are up 2.4% compared to June 2017.
Looking at prices, the report said the median sales price ofnew houses sold in June 2018 was $302,100; meanwhile, the average sales pricewas $363,300.
As of the end of June the estimated supply of new homes forsale stood at 301,000, representing a 5.7-month supply.
By Neils ChristensenFor Kitco News
Follow neils_C
nchristensen@kitco.comwww.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.