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Gold Remains Down Despite 10% Drop In December New Home Sales

(Kitco News) - The gold market continues to remain under pressure, unable to attract investors after data showed fewer-than expected U.S. consumers bought homes last month.

Thursday, the U.S. Commerce Department said that sales of new homes in December fell 10.4% to a seasonally adjusted rate of 536,000 units, down from November’s revised rate of 598,000. Economists were expecting to see a modest decline to 585,000.

Gold futures, have seen some strong selling pressure through most of the morning and continue to hover just above session lows. February gold futures last traded at $1,189.20 an ounce, down 0.72% on the day.

According to the report, December’s sales are down 0.4% compared to sales in 2015.

Looking at prices, the department said the median sales price of new houses sold last month was $322,500, up from November’s median price of $305,400; the average sales price was $384,000, up from $359,900 recorded in the previous month.

The inventory of new homes for sales at the end of the month was 259,000 units, representing a 5.8-month supply.

 

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

 

 

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.
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