Gold Prices Holding Near Six-Year High As U.S. New Home Sales Fall 7.8% In May
(Kitco News) -The U.S. housing sector continues to struggle to find consistent momentum as fewer consumers bought new homes in May.
Tuesday, the U.S. Commerce Department said that new home sales dropped 7.8% in May to a seasonally adjusted annualized rate of 626,000 homes, below April’s revised rate of 679,000 units. According to consensus forecasts, economists were expecting to sales of around 686,000 units.
The report said that annually, new home sales are down 3.7%.
Gold has been enjoying a solid rally Tuesday as markets continue to focus on falling bond yields and aggressive interest rate cuts as early as July. Economic data is having little impact on the yellow metal but some economists note that the weak housing data adds to calls for looser monetary policy.
August gold futures continue to trade near a six-year high, last trading at $1,439.60 an ounce, up 1.51% on the day.
The housing sector has been a significant drag on the U.S. economy for nearly a year as higher prices and rising mortgage rates have pushed many new home buyers out of the market.
The report said that the median sales price for new homes sold last month was $308,000; at the same time, the average price was 377,200.
Looking at the supply of new homes, the report said that the inventory as of the end of the month stood at 333,000 units, representing a 6.4-month supply.