U.S. Home Sales Data Has Little Impact On Gold Prices
(Kitco News) - Gold prices continue to hold on to modest gains, trading near session highs, following in-line existing home sales data, from the National Association of Realtors (NAR).
Existing home sales were unchanged from previous month, showing a a seasonally adjusted and annualized rate of 5.34 million in August. Economists were expecting to see a modest increase to 5.36 million units.
Gold prices were largely unchanged after the data was released, with December Comex gold futures last seen trading at $1,212.40, down 0.34% on the day. Economic data is having little impact on gold prices as the market remains sensitive to U.S. dollar flows.
According to some economists, the U.S. dollar is losing momentum as investors feel more comfortable taking on more risks, buying equities and emerging market currencies.
The unchanged reading in existing home sales ends a four-month downtrend.
Lawrence Yun, NAR chief economist, said that he is confident sales will pick up through the rest of the year.
“With inventory stabilizing and modestly rising, buyers appear ready to step back into the market,” he said.
However, some economists are as optimistic as potential home buyers still have to deal with rising prices and higher interest rates.
The NAR said that the median price for all types of existing homes was $264,800, up 4.6% from last year.
“August’s price increase marks the 78th straight month of year-over-year gains,” the report said.
The report said that total housing inventory at the end of August was unchanged from July at 1.92 million existing homes available for sale.