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Gold Ignores 4.7% Drop In U.S. Building Permits In November

(Kitco News) - Gold prices are holding on to modest gains, shrugging off data that shows some cooling in the U.S. housing market.

Friday, the Commerce Department said that building permits – an important indicator of future construction activity – fell by 4.7% in November to an annualized rate of 1.20 million permits, below expectations and down from October’s revised rate of 1.26 million.

Heading into the report, consensus estimates were calling for a modest decline, with economists expecting to see 1.24 million permits.

On an annual basis, building permits were down than 6.6% from November 2015

The department also said the tally of housing starts fell 18.7% in November to a seasonally adjusted annual rate of 1.09 million units, down from October’s rate of 1.34 million. Economists were expecting a reading of 1.23 million units.

Housing starts were down 6.7% from last year’s numbers.
Ahead of the report, the gold market was trading in modestly positive territory, bouncing off of Thursday’s new 10-month lows; February gold futures last traded at $1,135.50 an ounce, up 0.50% on the day.

 

By Neils Christensen of Kitco News; nchristensen@kitco.com

 

 

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