Gold Prices Holding Modest Gains As Existing Home Sales Misses Again
(Kitco News)- Goldprices continue to hold on to modest gains, following weaker-than existing homesales data, from the National Association of Realtors (NAR).
Existinghome sales were slightly down, showing a seasonally adjusted and annualizedrate of 5.15 million in September. Economists were expecting to see asales rate of 5.29 million units.
Goldprices were largely unchanged after the data was released, with December Comexgold futures last seen trading at $1,230.80, up 0.08% on the day.
The housing market remains a major concern among economistson the health of the U.S. economy. Existing home sales has not seen an increasesince March. In particular, last month's sales rate was the lowest sinceNovember 2015.
Some market analysts note that higher interest rates willcontinue to weigh on the sector, especially for new home buyers looking fortheir first mortgage.
"This is the lowest existing home sales level since November 2015," said Lawrence Yun, NAR chiefeconomist. "A decade's high mortgage rates are preventingconsumers from making quick decisions on home purchases. All the while,affordable home listings remain low, continuing to spur underperforming salesactivity across the country."
Looking at home prices, the NAR said the median existing-homeprice2 for all housingtypes in September was $258,100,up 4.2% from September2017.
The supply of homes for sale continues to drop, which is also a factor driving prices higher for new home buyers. The report said total housinginventory at the end of September decreased to 1.88 million existing homesavailable for sale, representing a 4.4-month supply at the current sales pace.
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.