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Gold Prices Shrug Off Stronger-Than-Expected U.S. Data

(Kitco News) - Gold prices are relatively unchanged following strong than expected U.S. consumer optimism and new home sales.

Tuesday, the U.S. Conference Board said that its Consumer Sentiment index fell to a reading of 97.3 in July, following June’s reading of 98.0.

However, economists were expecting to see a a bigger decline in consumer confidence with consensus forecasts calling for a reading of 95.6.

 “Consumers were slightly more positive about current business and labor market conditions, suggesting the economy will continue to expand at a moderate pace. Expectations regarding business and labor market conditions, as well as personal income prospects, declined slightly as consumers remain cautiously optimistic about growth in the near-term," said Lynn Franco, director of economic indicators at The Conference Board.

August gold prices last traded at $1,320.80 an ounce, relative unchanged on the day and since the release of the report.

At the same time, U.S. Commerce Department said that sales of new single-family homes rose by 3.5% in June to a seasonally adjusted annualized rate of 592,000 homes, up from May’s revised sales rate of 572,000 units. According to consensus forecasts, economists were expecting to see a modest rise to 560,000 units.

According to reports, new homes sales are at their highest levels in 7 years.

The department said that the median sales price for new homes was $306,700 last month, with the average price coming in at $358,200. Supply of new homes, at the current sales pace, fell to 4.9 months.

By Neils Christensen of Kitco News;



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