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Gold Prices Shrug Off Stronger-Than-Expected U.S. Data

(Kitco News) - Gold prices are relatively unchanged following strong than expected U.S. consumer optimism and new home sales.

Tuesday, the U.S. Conference Board said that its Consumer Sentiment index fell to a reading of 97.3 in July, following June’s reading of 98.0.

However, economists were expecting to see a a bigger decline in consumer confidence with consensus forecasts calling for a reading of 95.6.

 “Consumers were slightly more positive about current business and labor market conditions, suggesting the economy will continue to expand at a moderate pace. Expectations regarding business and labor market conditions, as well as personal income prospects, declined slightly as consumers remain cautiously optimistic about growth in the near-term," said Lynn Franco, director of economic indicators at The Conference Board.

August gold prices last traded at $1,320.80 an ounce, relative unchanged on the day and since the release of the report.

At the same time, U.S. Commerce Department said that sales of new single-family homes rose by 3.5% in June to a seasonally adjusted annualized rate of 592,000 homes, up from May’s revised sales rate of 572,000 units. According to consensus forecasts, economists were expecting to see a modest rise to 560,000 units.

According to reports, new homes sales are at their highest levels in 7 years.

The department said that the median sales price for new homes was $306,700 last month, with the average price coming in at $358,200. Supply of new homes, at the current sales pace, fell to 4.9 months.

By Neils Christensen of Kitco News; nchristensen@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.
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