Gold Moves Little After Sales Of New U.S. Homes Rise By 4% In March
Editor's Note: Updating earlier story with more details from report.
(Kitco News) - Gold prices were unfazed Tuesday by news that sales of new U.S. single-family homes rose by 4% in March to a seasonally adjusted and annualized pace of 694,000.
Consensus estimates compiled by various news organizations called for sales to be around 630,000. The Commerce Department revised sales for February to 667,000 from the originally reported 618,000. The sales rate from March of 2017 was 638,000.
As of 10:12 a.m. EDT, Comex June gold was trading up by $6.30 for the day to $1,330.30 an ounce. Two minutes ahead of mid-morning reports – both stronger than forecast -- on consumer confidence and the sales of new homes, the metal was at $1,330.10.
The median sales price of new houses sold in March was $337,200, while the average sales price was $369,900, the government said.
The seasonally adjusted estimate of new houses for sale at the end of March was 301,000. This represents a supply of 5.2 months at the current sales rate.
“While the current level is still slightly below November's spike, the series seems to be trending higher at a faster pace than single-family starts currently are, with the latter disappointing in the most recent month,” said Andrew Grantham of CIBC. “With months' supply now down to 5.2, we could see starts pick up in building in the months ahead.”