Strike Three: Gold Prices Ignore 1.7% Drop In U.S. July New Home Sales
(Kitco News) - Economic data continues to have little impact on the gold market as investors continue to focus on strong momentum in the U.S. dollar.
Gold prices while not reaction to weaker than expected housing data, remain under pressure and below important support at $1,200 an ounce.
Thursday the U.S. Commerce Department said that new home sales fell 1.7% in July, to a seasonally adjusted annualized rate of 627,000 homes, down from June’s revised rate of 638,000 units. According to consensus forecasts, economists were expecting to see a modest an increase of 643,000 units.
This is the second month that new home sales disappointed market expectations.
Gold prices remain under pressure as the U.S. dollar attracts some buyers after a four-day decline. The gold market has not seen any major reaction to any economic data released today, but has seen a steady decline. December gold futures last traded at $1,196.70 an ounce, down 0.55% on the day.
While the monthly data came in weaker than expected the report noted that annually, sales are up almost 13% from July 17.
Looking at sales prices, the report said that median sales price of new houses sold in July was $328,700. Meanwhile, the average sales price was $394,300.
The inventory of new homes for sale last month was 309,000 homes, representing a 5.9-month supply.
Many economists are raising concern about a growing weakening trend in the housing market. Rising interest along with rising prices is keeping many consumers out of the marketplace. The housing sector is a significant contributor to the nation’s overall economic growth.