Gold Edges Up As U.S. Existing Home Sales Disappoint
(Kitco News) - Gold prices edged up after U.S. existing homes sales missed expectations in June, according to the latest report from the National Association of Realtors (NAR).
Existing home sales decreased 1.7% last month to a seasonally adjusted and annualized rate of 5.27 million units, compared to May’s annualized rate of 5.34 million homes, the association said on Tuesday. The drop comes following an advance of 2.9% in May. Economists were expecting to see an uptick of 0.2% to 5.35 million units.
Gold prices rose following the release of the data with August Comex gold futures last trading at $1,428.60, up 0.12% on the day.
Gold began the North American session by trading slightly lower on the day amid “some profit-taking from the shorter-term futures traders and a normal pause and consolidation” after the metal hit a fresh six-year high last week, said Kitco’s senior technical analyst Jim Wyckoff.
“Technically, the gold bulls still have the solid overall near-term technical advantage. A two-month-old uptrend is in place on the daily bar chart. Bulls’ next upside price objective is to produce a close in August futures above solid resistance at $1,500.00. Bears' next near-term downside price breakout objective is pushing August futures prices below solid technical support at $1,400.00,” Wyckoff said.
The existing-home sales saw a small decline in June following gains in May, the NAR said in a news release. “While two of the four major U.S. regions recorded minor sales jumps, the other two – the South and the West – experienced greater declines last month.”
The median price for all home types reached an all-time high in June – $285,700, up 4.3% from last year, marking the 88th straight month of annual gains.
At the same time, the association said that total inventory remained unchanged from the previous year at 1.93 million existing homes available for sale.
“Home sales are running at a pace similar to 2015 levels – even with exceptionally low mortgage rates, a record number of jobs and a record high net worth in the country,” said Lawrence Yun, NAR’s chief economist. “Imbalance persists for mid-to-lower priced homes with solid demand and insufficient supply, which is consequently pushing up home prices.”