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Gold Prices See Little Reaction Following 10-Year High In Existing Home Sales

Kitco News

(Kitco News) - Gold prices continue to shake off U.S. economic data as U.S. consumers bought more homes in March, according to the latest report from the National Association of Realtors (NAR).

Friday, the association said that existing home sales rose 4.4% last month to a seasonally adjusted and annualized rate of 5.71million units, compared to February’s annualized rate of 5.48 million homes. Economists were expecting to see a rise to 5.61 million units.

The report noted that sales saw their fast growth pace in more than 10 years. Last month’s sales pace is also 5.9% higher compared to last year’s home sales.

“The early returns so far this spring buying season look very promising as a rising number of households dipped their toes into the market and were successfully able to close on a home last month," said Lawrence Yun, NAR chief economist. "Although finding available properties to buy continues to be a strenuous task for many buyers, there was enough of a monthly increase in listings in March for sales to muster a strong gain. Sales will go up as long as inventory does."

Gold prices are slightly positive on the day but is seeing little reaction to the positive economic data. June gold futures last traded at $1,284.80 an ounce, up 0.08% on the day.

Along with higher activity, the NAR also reported a rise in prices. The last month the median sale price for all housing types was $236,400, up 6.8% from last year’s prices.

Inventories of existing home for sale also increase to 1.83 million homes, representing a 3.8-month supply.

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 precious metal products, 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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