Gold Prices Down As U.S. New Home Sales Drop 6.9% In January
(Kitco News) - The gold market remains under significant pressure, down more than 1% on the day, seeing little benefit from slowing momentum in the U.S. housing sector as few consumers bought new homes early in the new year.
Thursday, the U.S. Commerce Department said that new home sales fell 6.9% in January, to a seasonally adjusted annualized rate of 607,000 homes, down from Decemberâ€™s revised rate of 652,000 units. According to consensus forecasts, economists were expecting to sales of around 622,000 units.
Gold has been under pressure as a result of renewed momentum in the U.S. dollar, which economic data having little impact on the yellow metal. April Comex gold futures last traded at $1,295.30 an ounce, down 1.09% on the day.
New home sales are down 4.1% compared to January 2018.
Looking at home prices, the report said that median sales price of new houses sold in January 2019 was $317,200; meanwhile, the average sales price was $373,100.
Looking at inventories, the report said that at the current sales pace there is a 6.6-month supply of new homes in the market.
Economists have been watching the housing sector very closely as it has been a significant drag on the U.S. economy. Rising home prices along with rising mortgage rates have priced many new home buyers out of the market.