Strike Three: Gold Prices Ignore 1.7% Drop In U.S. July New Home Sales
(Kitco News)- Economicdata continues to have little impact on the gold market as investors continueto focus on strong momentum in the U.S. dollar.
Gold priceswhile not reaction to weaker than expected housing data, remain under pressureand below important support at $1,200 an ounce.
Thursday theU.S. Commerce Department said that new home sales fell 1.7% in July, to aseasonally adjusted annualized rate of 627,000 homes, down from June's revisedrate of 638,000 units. According to consensus forecasts, economists were expecting to see amodest an increase of 643,000 units.
Thisis the second month that new home sales disappointed market expectations.
Goldprices remain under pressure as the U.S. dollar attracts some buyers after afour-day decline. The gold market has not seen any major reaction to anyeconomic data released today, but has seen a steady decline. December goldfutures last traded at $1,196.70 an ounce, down 0.55% on the day.
While themonthly data came in weaker than expected the report noted that annually, salesare up almost 13% from July 17.
Looking atsales prices, the report said that median sales price of new houses sold in July was $328,700. Meanwhile, the average sales price was $394,300.
The inventory of new homes for sale last month was 309,000homes, representing a 5.9-month supply.
Manyeconomists are raising concern about a growing weakening trend in the housing market.Rising interest along with rising prices is keeping many consumers out of themarketplace. The housing sector is a significant contributor to the nation'soverall economic growth.
By Neils ChristensenFor Kitco News
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