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Gold Holding Up As U.S. Housing Starts Data Exceeded Expectations

Editor's Note: Updating earlier story with more details from report and current prices.

(Kitco News) - Gold continues to hold up to early morning gains Thursday even as the latest U.S. housing data exceeded expectations.

The Commerce Department’s latest report showed that U.S. housing starts rose 1.6% in to a seasonally adjusted annual rate of 1.25 million units in January. Consensus forecasts compiled by most news organizations called for starts to be around 1.23 million. The December tally was revised up 4% to 1.28 million from the previously reported 1.23 million.

Meanwhile, the Commerce Department said the tally of building permits – important as an indicator of future construction activity – rose by 6.6% in   to an annualized rate of 1.29 million. This is the fastest pace since November 2015.

Gold prices are modestly higher Thursday with April Comex gold futures last trading at $1,237.50 an ounce, up $4.40 on the day.

The report also showed that single-family housing starts reached 823,000 units in January, up 1.9% from December’s revised figure of 808,000 units. Buildings with five units or more came in at 421,000 last month.

By Sarah Benali of Kitco News; sbenali@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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