Gold Market Remains Down Despite 8.7% Drop In U.S. Housing Construction
(Kitco News) - Gold remain under pressure Tuesday even as the U.S. housing sector continues to drag on economic growth.
The Commerce Department’s latest report showed that U.S. housing starts fell 8.7% in to a seasonally adjusted annual rate of 1.162 million units in February. Consensus forecasts called for starts to be around 1.22 million.
The report noted that for the year construction in the housing sector is down nearly 10% since February 2018.
Meanwhile, the Commerce Department said the tally of building permits – important as an indicator of future construction activity – fell by 1.6% last month to an annualized rate of 1.296 million. Economists were expecting to see an increase to 1.32 million.
Building permits, are down 2% compared to last year.
The data hasn’t had much of an impact on gold prices, which is seeing some profit taking after hitting a 4-week high Monday. April gold futures last traded at $1,316.20, down 0.48% on the day.
Economists have been watching the housing sector closely as it has been a weak spot in the U.S. economy. The housing sector has suffered because of rising home price and rising mortgage rates.