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Gold Prices Down As U.S. New Home Sales Drop 6.9% In January

Kitco News

(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 December’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.  

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.