Gold Prices Remain Near Session Lows Following 1.9% Rise In U.S. Housing Starts
(Kitco News) - Gold prices remain weak trading just off session lows following slightly stronger than expected housing construction data.
Tuesday, the Commerce Department said housing starts increased 1.9% to a seasonally adjusted annual rate of 1.132 million units, up from February’s starts of 1.295 million units. Economists were expecting new home construction slightly weaker at 1.27 million units.
At the same time building permits, which is an indicator of future construction growth, last month increased 2.5% to 1.354 million, up from February’s reading of 1.321 million permits. Economists were expecting to see 1.33 million permits issued.
Gold is not paying much attention to the economic data as it has been driven by the U.S. dollar and investor risk sentiment. June gold futures last traded at $1,344.80 an ounce, down 0.44% on the day.
However, while the headline data was positive, some economists have noted there is disappointing numbers below the surface. Single family homes, a key component for the construction sector declined 3.7% to 867,000 starts, compared to February's reading of 900,000.
The future activity also looks weak as permits for single-family homes declined 5.5% to 840,000, down from February's revised number of 889,000 permits.