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Gold Holding Steady As New Home Sales Rise 3.5% In August, July Data Revised Lower

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(Kitco News) - The gold market remains under pressure but holding around $1,200 an ounce a U.S. consumers buy new homes at a pace relatively in line with expectations.

Wednesday, the U.S. Commerce Department said that new home sales rose 3.5% in August, to a seasonally adjusted annualized rate of 629,000 homes. The rise the result of significant downward revisiond in July’s data with home sales falling to a rate of 608,000 homes.  According to consensus forecasts, economists were expecting to see a modest drop to 630,000 units.

The gold market is seeing little reaction to economic data as traders are keeping a low profile ahead of the Federal Reserve’s monetary policy decision to come out later in the day. December gold futures last traded at $1,199.7 an ounce, down 0.42% on the day.

Adam Button, currency strategist at Forexlive.com, said that the data shows that the housing sector remains a sore spot for the U.S. economy. He added that higher interest rates will continue to drag down the sector.

Looking home prices, the report said that the median sales price of new houses sold in August 2018 was $320,200; the average sales price was $388,400.

Meanwhile, the supply of houses for sale stood at 318,000 homes, representing a 6.1-month supply.

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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