Gold Prices Holding Gains As New U.S. Home Sales Fall 5.3% In June
(Kitco News) - The gold market continues to hold on to modest gains below critical resistance, but is seeing little benefit from slowing momentum in the U.S. housing sector as few consumers bought new homes last month.
Wednesday, the U.S. Commerce Department said that new home sales fell 5.3% in June, to a seasonally adjusted annualized rate of 631,000 homes. According to consensus forecasts, economists were expecting to see a modest drop to 669,000 units. May’s data was also revised lower to a rate of 666,000 homes, down from the initial report of 689,000.
According to many economists rising mortgage rates as a result of increasing interest rates are pricing some consumers, especially first time home buyers out the market, leading to slower demand.
The gold market is seeing little reaction to economic data, but is attracting some bargain hunters as prices have bounced modestly off last week’s 12-month low. August gold futures last traded at $1,231.50 an ounce, up 0.49% on the day.
Despite the monthly decline, the report noted that new home sales are up 2.4% compared to June 2017.
Looking at prices, the report said the median sales price of new houses sold in June 2018 was $302,100; meanwhile, the average sales price was $363,300.
As of the end of June the estimated supply of new homes for sale stood at 301,000, representing a 5.7-month supply.