Gold Holding Up As U.S. Housing Starts Data Exceeded ExpectationsBy Kitco News
Thursday February 16, 2017 08:36
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.