Gold Prices Steady After Nov. U.S. Housing Starts Rise To 1.297 Million Units
Editor's Note: The article was updated to include more information.
(Kitco News) - Gold prices did not move much after U.S. housing starts rose by 3.3% in November to a seasonally adjusted annual rate of 1.297 million units, the Commerce Department said Tuesday.
Consensus forecasts compiled by most news organizations called for starts to be around 1.24 million to 1.25 million units. The October tally was revised down to 1.256 million from the previously reported 1.29 million.
As of 8:48 a.m. EST, Comex February gold was down 80 cents for the day to $1,264.70 an ounce. This is right where the metal was trading one minute before release of the housing report.
“Although U.S. housing starts were expected to cool from the pace seen during October's post-hurricane rebuilding efforts, they instead saw a modest acceleration,” said Nick Exarhos of CIBC Economics.
However, he continued, while the November was above forecasts, the downward revision for October left the two-month average roughly in line with consensus estimates.
“Today's figures leave starts at the upper end of the range seen over the last two years, and supports our view for a strong rebound in residential investment in Q4, particularly with the recent strength being concentrated in higher value-added singles construction,” Exarhos said.
Meanwhile, the Commerce Department said the tally of building permits – important as an indicator of future construction activity – fell by 1.4% to an annualized rate of 1.298 million. Expectations were for 1.27 million.