Make Kitco Your Homepage

Gold Briefly Ticks Up After U.S. New Home Sales Surprise On The Upside

Kitco News

Gold Ticks Up As U.S. New Home Sales Surprise On The Upside

(Kitco News) - Gold prices edged up, but were largely unchanged, after the U.S. new home sales rose more than expected in May.

New home sales rose 6.7% last month to a seasonally adjusted annualized rate of 689,000 homes, the U.S. Commerce Department said on Monday. April’s sales were downwardly revised to a rate of 646,000 units from 662,000 units.

Market consensus for May projected a 1.5% rise of 667,000 units.

On an annual basis, new home sales surged 14.1% from last year’s estimate of 604,000 units.

Gold prices saw a small uptick immediately after the data was released, trimming some daily losses, with August Comex gold futures last trading at $1,269.60 an ounce, down 0.09% on the day.

Looking at home prices, the report said that the median sales price for homes sold last month was $313,000, while the average price was $368,500.

The inventory of houses for sale as of the end of May was at 299,000, representing a 5.2-month supply at current sales rate – the lowest level since November.

CIBC Capital Markets economist Katherine Judge pointed out that higher interest rates do not seem to present a problem for home buyers just yet.

“This report suggests that rising interest rates aren't holding back home purchases notably yet even as tight inventory levels and rising building material costs have spurred robust price growth,” Judge said in a note published immediately after the release.

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.